Just in Time (JIT) compilation is not possible as dynamic Wasm code generation is not allowed for security reasons. This sounds.. not right. Honestly,this is an essential feature for allowing workloads like hot reloading code cleanly.
I'm quite convinced the alleged security argument is bull. You can hot reload JS (or even do wilder things like codegen) at runtime without compromising security. Additionally, you can emulate codegen or hot reload, by dynamically reloading the entire Wasm runtime and preserving the memory, but the user experience will be clunky.
I don't see any technical reason why this couldn't be possible. If this were a security measure, it could be trivially bypassed.
Also, WASM bytecode is very similar conceptually to .NET IL, Java bytecode etc., things designed for JIT compilation.
I kind of dislike WASM. It's a project lacking strong direction and will to succeed in a timely manner. First, the whole idea is conceptually unclear, its name suggests that it's supposed to be 'assembly for the web', a machine language for a virtual CPU, but it's actually an intermediate representation meant for compiler backends, with high-level features planned such as GC support.
It's still missing basic features, like the aforementioned hot reload, non-hacking threading, native interfacing with the DOM (without Javascript ideally), low-overhed graphics/compute API support, low-level audio access etc.
You can't run a big multimedia app without major compromises in it.