On my install (Fedora 34, Gnome 40, Chrome Stable) if I run Chrome under XWayland (i.e., if I refrain from giving the flags -enable-features=UseOzonePlatform and -ozone-platform=wayland when starting Chrome) and set Gnome's scaling factor to 200% (gsettings set org.gnome.mutter experimental-features "['scale-monitor-framebuffer']", then using the "display" tab of Gnome's Settings app), Chrome is blurry. Probably it is rendering into a framebuffer, then that buffer is being scaled up such that every pixel in the buffer becomes a 2-by-2 square of pixels on my screen, hence my experience of blurriness. I don't own a hi-DPI monitor, but if I did do you know how to avoid everything's being drawn twice as small as usual without blurriness, i.e., without essentially downgrading the hi-DPI monitor to a normal-DPI monitor?
If (as I suspect) a person cannot do what I asked you how to do, i.e., a person cannot currently configure the set of software I described above to be normal sized on a hi-DPI display without blurriness and without "full Xorg" (i.e., not just XWayland, i.e., requiring parts of X11 that definitely aren't being maintained anymore), do you expect XWayland to be improved so that that becomes possible in the future?