The Wayland protocol provides the building blocks for someone to create an Android-like sandboxed environment, but doing so would break every application. Snaps and Flatpak come closer, but still generally miss the mark, since many applications require your entire home directory to be bind mounted in their container.
Running wayland alone gets you very little in terms of sandboxing. It locks the front door, but leaves the backdoor and all your windows open, because that's what every application under the sun expects.
> Under X11, you are basically running every application with root, always.
This is ... not true, either broadly or generally. You're saying this because Xorg runs as root, which means that any security flaw in Xorg yields root access. I think saying that "you are running every application with root" is stretching it a bit, but I'll accept it.
But Xorg doesn't have to run as root. OpenBSD started it years ago with Xenocara, but AFAIK Fedora also does not run Xorg as root. I'm not sure what other OSes are doing, but it's at least not a flaw of X11 in general, just a flaw of Xorg.