> We wanted an alternative to VBA, but got an alternative to the Excel formula language
Optimistically, I would guess that the powers that be inside MSFT wanted to show they "integrated" Python into Excel but didn't really want to mess too much with a product that has stabilized over the past 30 years. Cynically, I would say that they've messed up the implementation on purpose so they can put a bullet through the "Python in Excel" idea without actually doing anything useful.
A much better way to add Python (or any modern scripting language really) to Excel is to 1. Make a special library that can be called from the language and which only works with Excel. 2. Bundle a minimal interpreter so that the scripts can be run locally without pushing everything to some godforsaken Azure datacenter. Make this a downloadable plugin for all currently supported versions to ensure backwards-compatibility.
This is a much better way to ensure that Python becomes the glue language for Excel. There are so many applications where reporting, analysis and visualization can be better achieved through automation using scripting languages. VBA is old, limited and is yet another thing for someone to learn if they want to script any Office product. All of these are hurdles that can be easily removed. I guess though that the part that really sucks is that these are all things that the MSFT of the 80s/early 90s would have done in a heart beat if it meant more people would use Excel (they built in bugs from Lotus 1-2-3 for God's sake) but I guess it's a different story today when everybody does use Excel.