The host application is still C, and the final compilation of the mix of C and sanitized C still relies on the optimizer to be fast, so it might be possible for the untrusted library to reveal UB in the rest of the application. I can see how the whole approach (wasm + taint) would make compromise of the sanitized bits through crafted data harder, but I'm not sure it does enough for guarding against a supply chain compromise of the library.