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

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