Here's the web demo link, in case anyone missed it:
https://web.dahliaos.io/Current machine: Edge (closest thing to Chrome that i have apart from Firefox) or Firefox, Ryzen 5 1600, RX570.
The performance is passable for a graphically intensive application but entirely unacceptable for a desktop environment of any kind. In addition, it seems like it is a bit worse optimized on Firefox than it is on Chromium based browsers.
Opening 1 window and dragging it around leads to ~25% of the GPU usage (albeit i power limited mine to 50% of the total capacity), which feels insane when you consider that games running at 60 FPS use maybe ~50%. Opening up more windows, anywhere between 5-10 and dragging them around yields a similar load to rendering tens if not hundreds of thousands of polygons on screen.
Thus, i have to agree with the folks that say that this is entirely unacceptable as a desktop environment for any device, apart from when you are inclined to waste your hardware resources for no good reason. Admittedly, Flutter is better suited for this than it is for web development (in which it can be downright hostile and cause accessibility issues) and if nothing else the UI looks good, but personally that's not something that i care about.
In summary: i don't think that this would ever be an acceptable desktop environment, especially for devices that are running on battery power. Its resource usage would cripple any graphically intensive tasks in the background, unless you have really powerful hardware, which isn't the case for much of the world. Then again, in my eyes the perfect DE is somewhere along the lines of XFCE/LXDE/LxQt, so YMMV.
Edit: tested it out on my notebook as well, which has a N4000 Celeron and Intel UHD 600 integrated graphics. Even opening 1 window lagged everything considerably (on Firefox) and i have to guess that the FPS was somewhere between 10-20.
So, once again: unacceptable as a desktop environment, even with any given browser overhead. Of course, being able to run software like this in the browser reflects positively upon its portability, if nothing else, which is cool to see.