It can obviously do amazing things, but the expectation for it to do replace webdev frontend code was always a huge misconception. Though recent developments have made DOM access without a JavaScript translation layer possible, so that might change!
I'd say the hype is still very much alive.
You don't hear much about it because for the people using it, web+wasm is "just another porting target", like Windows, macOS or Linux. WASM has become 'normal' and that's a good thing.
The main risk these days for WASM is feature creep, the spec is getting bloated with optional features (garbage collection etc...).