I was hinting at wasm runtime inside canister a while back. Compiling the a wasm runtime to wasm is not trivial, perhaps not even feasable today.
But as part of the system API, would be great!
First thing that comes to mind is app stores / installable mini dapps etc.
I always wanted my own miniOS in a canister. Imagine your own canister with a frontend where all your IC dapps live
IMO that’s the true vision of a decentralized web