Earlier quoted context omitted.
Guile (the VM) runs elisp just fine. There has been zero optimization work done though so it is quite slow. The reason they did not go with guile was more political than anything else. It was also understandable from their point of view (and I say this as a guile weenie)
No, the reason is still slow string buffers. Politically everybody wants emacs to switch to guile.
You maybe have some more inside info, but back in 2016 I remember a lot of complaints and that guile was a liability for the much bigger Emacs project. Maybe even people threatening to retire as maintainers