We just shipped 1.0, but this slightly older blog post goes into the architecture a bit more: https://devblogs.microsoft.com/qsharp/introducing-the-azure-...
Wasm was never intended to be used on every web page, just like the Video element wasn't.
The advantage of shipping an encoder in WebAssembly for is that you don’t have to rely on the browser supporting the specific codec you want. e.g. Safari and Firefox don’t yet support WebCodecs at all, but do support WebAssembly.
For a small taste,
"Meet Leon - superfast GPU-accelerated (WebGL) mpeg1-like video decoder in JavaScript"
https://www.easy-bits.com/mpeg1video-decoder-webgl-gpu
See mpeg1video-decoder-webgl.js on developer tools.
I didn’t realize enough of the work in decoding mpeg was paralellizable enough to do on the GPU, let alone in the constrained world of WebGL, but apparently it is.