I'm working on an embeddable mini VM (RISC-V rather than WASM) and am considering this. In my model, there's something akin to a hardware watchdog where the VM is considered hung if it executes too many instructions without calling a yield() function in the host, then there's the ability to set a maximum number of instructions to execute before returning to the caller.
This lets it be handled asynchronously at the pace the host code chooses https://github.com/ringtailsoftware/uvm32