In Wayland, a fail-stop bug in the window management logic will now bring down your compositor and every program that was connected to it. In X11, a fail-stop bug in the window management logic only crashes your window manager -- everything else keeps running. This is a really nice property to have -- in general, why make the "blast radius" of a fail-stop bug bigger when we don't need to?
Like, what's the upside of making it so a bug in the window management logic can crash the entire GUI? You claim latency due to no need for serialization/deserialization across process boundaries, and you claim potentially less-complex code. I'm very skeptical about the complexity reduction -- you're replacing the IPC with global state guarded by critical sections which your threads all need to respect. Getting rid of IPC isn't "free" -- you're replacing it with something that could be even worse. So, I'll need to see some actual case studies here.
I agree that there is measurable latency (context switches and all), but if it's a difference of only a few extra microseconds -- i.e. something the user won't notice because computers are insanely fast these days compared to when X11 and window managers were first written -- then I'm disinclined to give up my crash resilience. Do you have data to show that there is noticeable, irreducible performance lag in having a separate window manager process from a compositor?