Nice! I did a similar project, more focused on creating an Elm architecture framework in TypeScript here[1]). I based it on implementing virtual-dom logic for both Elm codebases and Derw's renderer. Since it's a decent amount of code, I couldn't find a good way to represent it in a blog post, and ended up making a commit-by-commit example on Github instead. Since it's FP-focused, it doesn't support useEffect/useState like this post, but rather has an external subscription/message system instead.
It does support server-side-rendering, hydratation, and async events. It's a bit different in implementation in the OP's post, but I think the most important thing any reader should take away is that at the core, virtual-doms can be quite simple with plenty of room for further optimization.