The reverse is also true, by the way - WSL portion of filesystem can be observed directly from Win32 (cd %USERPROFILE%\AppData\Local\lxss and look around, but don't touch - there's some magical pixie dust there that's easy to disturb and break things from the Linux side of things).
And it's not just filesystems. We're also talking about potentially shared file descriptors/handles (where appropriate), access to processes in both directions etc.
So from user's perspective, I would argue that it's actually more similar to Wine. Even if the implementation is more low-level (syscall emulation vs userspace API emulation).
Actually (it's been a long time since I last used Wine though, so I might remember incorrectly), Wine is "self contained" as well and there's a "C: drive" directory structure with notepad.exe etc. too, just like the WSL system.
Wine runs on the host OS, WSL runs apps from linux image. This image is self contained, just like a VM.
Aside from that, I said it's practically a VM. There might be some different technical stuff going on underneath, but for a user there is very little difference between WSL and a VM.