Erlang processes are not 'green' as threads are green in java. Erlang processes are structures, which do not share memory and they are maintained by Erlang VM.
It may sound strange but this paper could be 'old' (even though bio from 2007). It all changed around R13 release when we got brand new handling of run time queues (with dynamic balancing stuff and other goodies). Here is some presentation by Ulf Wiger about it http://ulf.wiger.net/weblog/2009/01/23/erlang-programming-for-multicore/
To sum up, processes are completely transparent and you may adjust number of run time queues and schedulers, but OS realization is not intact. I do not want to speculate why there are like 11 of threads..
EDIT: I am wrong about OS a bit:
"+S Schedulers:SchedulerOnline
Sets the amount of scheduler threads to create and scheduler threads to set online when SMP support has been enabled. Valid range for both values are 1-1024. If the Erlang runtime system is able to determine the amount of logical processors configured and logical processors available, Schedulers will default to logical processors configured, and SchedulersOnline will default to logical processors available; otherwise, the default values will be 1. Schedulers may be omitted if :SchedulerOnline is not and vice versa. The amount of schedulers online can be changed at run time via erlang:system_flag(schedulers_online, SchedulersOnline).
This flag will be ignored if the emulator doesn't have SMP support enabled (see the -smp flag).
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from here: http://www.erlang.org/doc/man/erl.html
EDIT2: Interesting discussion on erlang-question mailing list on pros and cons of many VMs vs many schedulers. Unfortunately it is also from 2008 and may not be valid with huge improvements in new OTP releases. http://www.erlang.org/cgi-bin/ezmlm-cgi?4:mss:38165:200809:nbihpkepgjcfnffkoobf