1. No support for nested virtualization, so running a vm inside your vm is not available. This prevents use of projects such as kubevirt or firecracker on a Linux guest, and WSL2 on a Windows guest.
2. No GPU support
If the base hypervisor was Linux, it would be way more capable for users it seems. I also wonder if internally Linux is used for development of the platform itself so they can create "virtual" racks to dogfood the product without full blown physical racks.
With all that said, I do not know the roadmap and admittedly there are already quite a few existing platforms built on kvm, so as their hypervisor improves and becomes more capable it could potentially become strategic advantage.