You are right. WSL 2 runs on Windows hypervisor layer which can be compared to type-2 hypervisor environments (although it is not my expertise). But since we are talking about my home office and not some server requiring high availability, I do not really care about HA. I too keep my dual boot for now, but I find myself switching less often, if ever.
Also, no WSL 2 will not replace operating systems running over hardware, of course. That is not the point. The point is that you can now do your work on Windows using a Linux distribution. There is nothing that can stop you. Now, if your work requires specific things like tweaking the Linux Kernel then yes, you cannot rely on this. But if you are an Angular developer, then come on, you can do everything on WSL 2.