What's proposed is structural compression of JS with JS-specific bits to speed things up even more. What's proposed is not compiled JS, in that the original JS is not meaningfully transformed at all. There is a very explicit design goal to retain the original syntactic structure.
OTOH WebAssembly is like a new low-level ISA accessible from web browsers. To use wasm, one does have to compile to it. As the parent here says, compiling JS -> wasm currently requires at least a GC but also much more. To engineer a performant VM and runtime for a dynamic programming language like JS is a time-consuming thing. It is curious to see so many folks think that JS can straightforwardly be compiled to wasm. Currently wasm and JS serve very different needs; and I also don't think JS will be going anywhere for many, many years.
Edit: formatting