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I just don't see it. WASM requires throwing away all the decades of x86/ARM compiler work in ecosystems like Java, .NET and C++ and placing all trust in the WASM runtime/V8 to perform as well as them.

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It's doesn't. It's just another compilation target along side x86 and ARM and friends.

Yes, but now you are going through another translation (aka V8) layer in order to get down to x86 or ARM. You just have to hope that the optimizer of this translation layer is at least as smart as what you had before.

How is that worse than JavaScript?

x86 and ARM compilation don't go away. WebAssembly is an additional option.

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