It is indeed true that most VMs, including JavaScript, WebAssembly, the JVM, etc., have significant latency on the boundary. For example, many wasm VMs will install a signal handler, and that needs to be enabled/disabled on each entry/exit from the VM.
But the latency can be fixed. You can sandbox WebAssembly without a signal handler, in particular (at the cost of a few % throughput overhead for bounds checks). I'm not sure if the author benchmarked that, but it should be very fast.
(As for "why RISC-V" in the project, it looks like that's because it's easy to write an interpreter for, but it could have been any compiler target, it seems.)