Current desktop user interfaces are terrible, and we need the flexibility of a web browser to innovate and implement better ones, since Wayland is simply not up to it, because it's not extensible at runtime in JavaScript or any other language. (No, recompiling or dynamically linking in DLLs doesn't count -- that's just ActiveX.)
Nothing is stopping someone from making a wayland compositor that is.
As complex and backwards compatible as web browsers and JavaScript are, you already need all that complexity anyway and already end up paying for it all. So why not use it to implement the desktop too?
I'm not proposing eliminating the web browser. Are you? I'm just saying use the web browser you already have all the way down, instead of re-implementing part of it.
The problem with DaedalOS is that it doesn't bother to innovate, it just implements old designs: Windows 95 or so. No pie menus, no tabs, no virtual desktops, no rooms, just old ideas.
But those old designs are not hard-coded into the browser, they're all just software you load into the browser and can change. Why not be able to change the entire actual desktop that way?
I think you need to invert and ask - why to do all this? You'll get much worse performance, many extra layers when you need more direct access to hardware etc.
How so? The biggest innovations in the browser in recent years have been shadow-DOM type stuff like React/Vue, plus WASM and WebGL. None of these are backwards compatible with older browsers.