It doesn't really matter, what language you choose. If the language is Turing-complete, then you can write an OS in it.
However, the expressiveness of the language will make certain kinds of designs very easy or very hard to implement. For example, the "liveliness" and dynamism of the old Smalltalk OSs depends on the fact that they are implemented in Smalltalk. You could do that in C, too, but it would probably be so hard that you wouldn't even think about it. JavaScript or Ruby OTOH would probably be a great fit.
Microsoft Research's Singularity is another example. It simply couldn't be implemented in anything other than Sing#, Spec# and C# (or similar languages), because so much of the architecture is dependent on the static type safety and static verifiability of those languages.
One thing to keep in mind: the design space for OSs implemented in C is pretty much fully explored. There's literally thousands of them. In other languages, however, you might actually discover something that nobody has discovered before! There's only about a dozen or so OSs written in Java, about half a dozen in C#, something on the order of two OSs in Haskell, only one in Python and none in Ruby or JavaScript.
Try writing an OS in Erlang or Io, and see how that influences your thinking about Operating Systems!
