The disk issue was probably going to be difficult to solve even with the WSL1 model if they wanted good IO performance. Using a proper Linux filesystem underneath is a decent compromise IMO.

The RAM issue is a clear setback, and makes it annoying trying to do large compile jobs on the Linux side, though it's been a while since I've tried it. In theory it could be possible to handle coorporation between the Linux and Windows RAM usage patterns since they're running a very heavily modified kernel. I'd be very interrested in knowing if anything is hapenning on that front.