Well it's possible. Take a look at my menu converter. The heart of that is just a really simple EUO parser that's been hard-wired to convert menu commands. Cheffe is working on a more generic method, and mine was really just my first attempt at Lua.
You'll run across the problem I did when I wrote ScriptUO. Cheffe's EUO parser doesn't really follow classic infix evaluation rules since there are special interpretation cases based on specific commands (i.e. display, menu and a few others.) My parser got a bit crazy because I just didn't quite understand how Cheffe was evaluating each command.
I didn't even subscribe to Cheffe's EUO interpreter project because:
a) He's got the tribal knowledge to make the parser work correctly
b) Nothing I write is going to match his standards
c) I don't want to work on something only to have it thrown out (i.e. ximan)
d) objects.dll cannot fully represent what's possible with EUO (i.e. button color, control font styles, tranparency, etc)
So we'll just wait for him to finish EVERYTHING eventually. I had to get into it pretty deeply to realize that it's not ready. I'm not sure if anyone else out there has a 2000+ line OEUO script, so I think I managed to see where the issues are.