Under wider definition of “system software” you can consider db tech (etcd, cockroachdb, digraph) and compute management software (kubernetes, nomad, docker) to be included into that. Which is where Go is doing just fine. Lower level stuff is harder but because of gc not lack of generics
GC is just fine for OS development, as proven by Xerox PARC, ETHZ systems used in production.
The problem is more of mentality and not having management willing to push it down unbelievers no matter what, that prefers to recycle UNIX clones instead to save money.
Midori powered Asian Bing for a while and even then the Windows team did not believe it was possible.