It's pretty bloated and slow compared to alternatives. This may improve if WasmGC gets integrated instead of part of the payload, but it's still not a great solution, especially on constrained devices. The flip side, is running in server mode means the laggy round trip actions that feel somewhat painful in contrast, reminding me of ASP.Net WebForms and how painful that was in practice.
Maybe replacing containers...I had a better developer experience and a better overall quality of life when I deployed war files into a servelet container (tomcat). I wasn't patching operating system vulnerabilities across a jagged sea of micro service images or patching vendor supplied images either (literally had to do that with Kafka). I deployed a fucking war file. That's it. And I'd also imagine that a WASM module\app would have a much snappier start time without having to lug around the overhead of a container...And "Alpine Linux" can go ahead and kiss my ass (no offense).