"When it comes to performance, I was referring primarily to e.g. cross-domain queries. That continues to be challenging in data virtualization / federated query engines."
Have you tried Trino lately? Data virtualization like Denodo still relies on moving data back between engines to execute a query, Trino pushes the queries down to both systems and processes the rest in flight. The fact that you use both of those interchangeably makes me think you may not have tried it.
"Data mesh targets analytical workloads - and surely you do not suggest e.g. hooking Trino up directly to operational, OLTP databases?" Not operational data. Are you saying teams aren't allowed to store immutable data in PostgreSQL?
"Not only are the domain teams free to build the aforementioned pipelines and model data in any way they see fit"
You will organically see teams build data infrastructure with different tooling. This happens when you don't tell a team they have to use a DW to play the analytics game. I have never seen a company that has multiple teams that organically land on using the same tech. So naturally (that is without forcing the to use one substrate i.e. DW) you will have different teams (or domains) using different databases. This is why we have DW to begin with. They were literally created to be a copy of domain data that naturally lied in many operational databases.
I get that in an ideal world, there would be some magical one size fits all solution that everyone would just use. However, that system doesn't exist. It's certainly not the DW. DW can be one of those solutions, just not THE one.