> you need to reimplement parts of Linux
Again, no. The security policies we have in mind can be implemented above the WALI call layer and supplied as an interposition library as a Wasm module. So you can have custom policies that run on any engine, such as implementing the WASI security model as a library. As it is now, all of WASI has to be implemented within the Wasm engine because the engine is the only entity with authority to do so. That's problematic in that engines have N different incompatible, incomplete and buggy implementations of WASI, and those bugs can be memory safety violations that own the entire process.
Thin kernel interfaces separate the engine evolution problem from the system interface evolution problem and make the entire software stack more robust by providing isolation for higher-level interfaces.