Nowadays we can use LVGL and C++ to write apps, or run script based C code using interpreters like Wrench: https://github.com/jingoro2112/wrench
What I'm missing is an GUI-based OS like Kolibri to launch apps.
Modern display signaling takes a lot of compute power simply due to the sheer complexity of it and even emulating something like VGA over I/O pins would eat most of not all the compute power available on an MCU.
So you’re essentially stuck with a terminal over the network with an ESP which if you again make graphical would cost more in rendering and stream compression than there is compute so you’re stuck with text based terminals.
Nowadays you can buy ESP32 boards that include touchscreen displays, memory card readers and so on for 13 euros with shipping included: https://www.aliexpress.com/item/1005006110360174.html
Don't even understand what you mean with "a lot of compute power". We've been using LVGL for GUI apps and playing movies on these devices since a long time just fine. Here is a demonstration of that board: https://www.youtube.com/watch?v=0AVyvwv0agk
This stuff even has mesh networking, and yet we still don't have Cybikos!
Would certainly enjoy have an GUI-based OS like this running on it.