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Patrick Logan explains some of the issues that would crop up in a hypothetical .NET that supported dynamic updating (as speculated by Gordon:

One issue that comes to mind is stack-allocated objects...

Imagine module A defines a stack-allocated and some system should load a newer version of A. Now imagine the newer version of A redefines the stack allocated object, e.g. gives it a new "shape". What does this do to the objects allocated on the stack and the code in other modules that manipulates them?

This is one of the key differences between the "everything is an object" as defined by dotnet, and the "everything is an object" as defined by Smalltalk.

Dynamic updating isn't just for servers either; BottomFeeder can have new versions of code downloaded and loaded without a restart. This is one of those power things where Smalltalk is just better