I've been dealing with serverless since 2018 and have a company with a 100% serverless and open-source product (webiny.com). I'm not sure I fully agree with your 4 issues and the fact that Web Assembly is the answer.
"Serverless functions are slow" -> not really, only if designed poorly
"DX serverless functions is sub-par" -> where's your proof, again you'll have bad experience as a developer only if you don't know what you're doing. Which I see mainly from people trying to approach building serverless applications by having a container-like mindset and that leads them to bad design choices.
"Serverless functions come with vendor lock in" -> I think most of us are beyond the point of that vendor locking is bad choice. Worse choice is picking a sub-optimal technology with lower performance, higher cost and lesser reliability.
"Cost eventually gets in the way" -> Again, only if you don't know what you're doing and make bad design choices.
When it comes to Web Assembly, I don't see how this is a better choice of technology vs something like Node. In node I have a much wider support of the technology than WA (talk about vendor-locking), I have a proven eco system of libraries, knowledge and a much bigger talent pool to source from. The cold start issue you mentioned on your website, I can tell you first hand, the cold start is not really that big of a problem, not big enough that you would want to switch to a different technology and there are many ways to mitigate the cold start problem.
Just saying, I'm far from convinced that there is a benefit in switching. I would love to see more detailed benchmarks and examples I would be able to replicate than just statements in a blog post.
If you have Node apps running in Lambda and are happy with the architecture, cost, and operating model: great! You've done good work and/or are very lucky and there's no need for you to rip everything out and start over.
Heck, even if you're curious about WASM and want to try some experiments with (say) fast Rust crypto libraries or embedded database engines w/o the risk of flaky native code crashing your V8 runtime: again, you can just run WASM from a Node worker thread and keep cruisin'.
For those of us who _don't_ have a huge investment in Node, have hard requirements around e.g. memory usage, cold start times, or even just plain old _cost_ (which can become a major factor when you consider the AWS lock-in) that Lambda doesn't meet really benefit from another option.
Your good fortune in finding a stack that works well doesn't mean that folks who have different needs or constraints are dumb, ignorant, or lazy.
As an aside, I think you also might be underestimating the depth of experience and knowledge of the Fermyon crew when it comes to containers, cloud runtimes, and serverless development. This is substantially the same team that built Helm, and a lot of other Kubernetes and cloud-native ecosystem projects along the way.
"Serverless functions are slow" -> not really, only if designed poorly
"DX serverless functions is sub-par" -> where's your proof, again you'll have bad experience as a developer only if you don't know what you're doing. Which I see mainly from people trying to approach building serverless applications by having a container-like mindset and that leads them to bad design choices.
"Serverless functions come with vendor lock in" -> I think most of us are beyond the point of that vendor locking is bad choice. Worse choice is picking a sub-optimal technology with lower performance, higher cost and lesser reliability.
"Cost eventually gets in the way" -> Again, only if you don't know what you're doing and make bad design choices.
When it comes to Web Assembly, I don't see how this is a better choice of technology vs something like Node. In node I have a much wider support of the technology than WA (talk about vendor-locking), I have a proven eco system of libraries, knowledge and a much bigger talent pool to source from. The cold start issue you mentioned on your website, I can tell you first hand, the cold start is not really that big of a problem, not big enough that you would want to switch to a different technology and there are many ways to mitigate the cold start problem.
Just saying, I'm far from convinced that there is a benefit in switching. I would love to see more detailed benchmarks and examples I would be able to replicate than just statements in a blog post.