Ugh, they cannot fix it because this is not something that wayland can fix at all.
Look, if you have user access to the account, you can get its data. Even if you somehow make Wayland 100% secure, you can still replace “firefox” shortcut with malicious version which also steals all your passwords. No windowing aystem involved at all.
The X11 protocol allows any client connected to the server to become a keylogger or insert input events. So, even a X11 client trapped in a sandbox or another user account has full access.
The X11 protocol doesn't enable this, even if the most widely used X11 implementation does. An implementation could isolate clients by dropping events and returning blank rectangles for GetImage calls.
IMO the main problem there is that the UX around dropping events and returning blank rectangles is bad. We have the tools to design other protocols centered around a real security architecture that can communicate intent properly and doesn't need to return fake data.