I see this as three separate questions (with my answers): Is it a denial of service attack exposure? - Clearly not.
Is it a defect? - I don't believe so, for the base issue of whether VM should allow a privileged user do do something destructive, though there may well be defects or scalability / constraint shortcomings exposed by the hang (we'd need to see a dump to understand what's really happening). Is this an area ripe for improvement, could/should VM be smarter about preventing a privileged from doing something dangerous or destructive? - Sure. I won't tell you not to open a requirement. - Bill Holder, z/VM Development, IBM