I thought about this for a bit while sitting in Sensors & Controls class, using a ton of Laplace transforms. I think this is right, but here goes:
The determining factor concerns the highest power of s in both the numerator and denominator, so let's call them m and n, respectively. Mathematically, real systems correspond to transforms where n >= m, so the highest power in the denominator has to be greater than the highest power in the numerator. As you can see in your example, the numerator power is higher, so this is not a realizable system. Also, try doing an inverse laplace transform on it.
Intuitively, though, the frequency response of such systems tend towards infinity, with nothing damping it. This never happens in reality because no quantity ever "reaches" infinity -- there's always something damping it. Things like air resistance, friction, heat transfer, and viscocity all stop systems from racing off towards infinity; even subatomic particles are (ostensibly) limited by the speed of light. Any physically relizable system needs to have damping factors like these included in the system's model.
Plot this system in MATLAB to see the frequency response:
bode(tf([1 0 1], [1 1])).
Anyways, that's my interpretation... can anyone confirm this?