For mobile and desktop, sure 32 bit is fading, but embedded 32 bit is so far from obsolete. I don't know how you can even claim that when even 8 bit platforms still have a huge market share.
ARM cortex-M (32 bit) has only recently been able to chip away at 8 bit platforms and gain major use
Yes, but the embedded platforms that are interesting for high-level scripting are mostly phones. Worse than desktops, they won't bother with 32-bit compatibility layers.
Using the other meaning of embedded (I embedded a Lua script in my C application), compatibility libraries don't help. It simply won't link.
Using the other meaning of embedded (I embedded a Lua script in my C application), compatibility libraries don't help. It simply won't link.