Similar method might be doable on an MCU.
https://fosdem.org/2018/schedule/event/rust_embedding_wasm/
Then there's "WebAssembly interpreter in C":
https://github.com/kanaka/wac
Looks like it might be good enough for implementing WASM "scripting" support in smallish environments.
I think this idea has a lot of merit, overall, exactly as you say: kind of like a Lua.