Frankly, I wish they'd put up or shut up - either prioritise it and make it happen, or just admit defeat and say it's not going to happen.
Then some of the Midori tech eventually made its way into .NET Native, which from my point of view UWP + .NET Native is what .NET should have been all about back in 2001.
Apparently after the timid attempt with XAML Islands and MSIX, they seem to be getting the house in order and driving the platform into a way to pretend that Windows 8 and 8.1 never happened, but it seems to be lacking a lot of coordination and long term planning.
Windows 10X apparently is also not getting Win32 sandbox any longer, this assuming it ever gets released.
Still in the middle of the chaos, it still feels much better than if I had to deal with Android on daily basis, one IO best practices is next years legacy.
What many have been waiting for is the ability to AOT for both Windows and Linux.
I recall Mono had something like this around 10 years back, but it was a bit flakey. Not sure if that still exists in some form.
WASM now and emscripten before it both were designed and optimized for POSIX C apps and for games, and they're pretty good for those scenarios. Larger-scale stuff is pretty tricky and the tooling ecosystem will have to continue to grow to support more real-world applications. JIT, stackwalking, GC, etc are all still not there on WASM - thankfully threading is finally crossing the finish line but even that has taken years.
To provide more detail: Exception filters require the ability to stackwalk and search for filters and run them before actually handling the exception. WASM has no stack-walking functionality whatsoever (this also means getting and introspecting stack traces is currently impossible), so searching for filters is already a non-starter. You can try and emulate this through a normal unwind-only exception flow, but you have to rewrite all your application code to insert lots of checks and flow control changes in order to do it, and it's still observably different.
I've spent months just working on fixing this problem, and it's one of the things that wasm AOT is going to need before it can ship.
WASM is a generally weak target platform. A great 1.0, to be sure, but unless your goal is to run posix C code you're going to hit snags. When we were designing WebAssembly to begin with it was an intentional decision for 1.0 to be limited in feature set with the goal of improving it later - a Minimum Viable Product.