It would be. The use of varints in wasm complicates encoding and decoding and introduces ambiguity into the format for cases like v128 constants (which despite technically being 128-bit integers, are not embedded using leb128.) It also makes it harder to write a single-pass compiler.
It also isn't much of a wire size improvement, since the overall format design assumes you will compress it using brotli (or gzip, I guess) - there are lots of opportunities to make the format smaller or arrange it in a way that makes it more compressible, and the decision was made not to do those things since brotli is really good at compressing data.
I think the people who took control of the binary format just really liked varints for some reason, so we ended up stuck with them. It's at least not particularly harmful, it's just a small waste of everyone's time. Thankfully, my understanding is that in practice most modules will only get decoded once or twice before the compiled code is cached by your browser.