There are some differences in the software thought.

True, but it uses a Linux kernel over hyper-v rather than a wrapper over the win32 api like WSL1 (from what I understand!)

Yes, but it is a slightly modified distro which causes some issues

And not all are minor. Not being be able to run LXC is a deal breaker for me.

You could with a little work in June 2019, not sure what the picture is like now but it might be possible. I've used nix quite a bit on WSL2 which was surprisingly good.

https://blog.simos.info/how-to-run-lxd-containers-in-wsl2/

What makes you think WSL2 isn’t able to run LXC?

WSL2 is a custom Microsoft kernel

If you can't do what you want in it, please open a ticket on https://github.com/Microsoft/WSL - there is also a repo for the kernel, but AFAIK technical feedback is best sent through this one.

(disclaimer: not directly involved with WSL, just trying to help)