1. It's too damn hard to get data into and out of wasm modules. The component model is addressing this but it's sprawled out into literally rebuilding "worlds" and turning wasm modules into sort of lightweight virtual machines. I wish there was just more of a focus on getting data into and out of modules first.
2. Lack of GC which has made languages like js/python/jvm/c# unfeasible. WASM GC is just now available and hopefully ship compilers can target and build wasm modules that aren't so large in not too distant future.
Once we are past these 2 items, wasm can run free and really should become the final unit of deployment.
edit: I also suspect that like the jvm which started as a client tech, wasm will find more use on the server side, than on the client side in info/business type software.