Maybe they hoped to be like Docker, where the value-add was cohesive higher-level tooling on top of all the lower-level bits. If that's the case, then WASI would be an existential threat in that it (and the tooling people are building around it) commoditizes what would otherwise be Wasmer's special sauce. I'm speculating wildly, of course, but it would at least be consistent with Wasmer's/Sirius's apparent vendetta against WASI and the people working on it.
I hope Wasmer eventually finds a way to add value that doesn't rely on constant gaslighting and white-anting the standards process.