I've been hearing this for over a decade now. I don't get it. Just because xorg currently makes different clients aware of each other and broadcasts keypresses and mouse movements to all clients and allows screen capturing doesn't mean it has to. You could essentially give every application the impression that they are the only thing running.
It might seem difficult to implement, but compare it to the effort that has gone into wayland across the whole ecosystem. Maybe that was the point - motivating people to work on X was too difficult, and the wayland approach manages to diffuse the work out to more people.
I was really bullish on Wayland 10 years ago. Not so much any more. In retrospect it seems like a failure in technical leadership.