> You can launch into a WSL shell in seconds without having to wait for a VM to spin up.
Start VM in background at boot time and ssh in milliseconds when necessary.
> WSL doesn't run the full slew of linux processes
I don't know what linux processes are you talking about, but minimal Linux ram consumption is something like 50 MB, that's hardly noticeable.
> uses the same memory space
RAM ballooning is available in VirtualBox or Vmware for years.
> CPU utilisation is much lower than a VM
I don't think that's true. There's no inherent CPU utilization in Linux (and WSL2 is VM).
> You don't need to contend with all the fiddly configuration parameters and config of VM software, and it integrates into the Windows environment by default, again without fiddly configuration.
And that's probably the main reason why WSL is so popular. Installing VM software, creating virtual machine with proper configuration, installing guest tools, configuring it to start/stop at host OS boot/shutdown, configuring shortcuts for ssh is out of reach for most developers and power users. WSL just simplified that process. Probably could be implemented with some wrappers around VBoxManage years ago, but nobody understood the problem.