This is an opportunity to try another approach.
A lot on Xorg is for legacy hardware and software which is out of use, but they keep it, because that's in their mission or some other statement or principle. But Xorg already is allowed to exist with Wayland on the same repository.
Xorg could be forked instead of Wayland, stripping out legacy parts that are no longer used. Use Wayland, Weston and WLroots as case studies for a blueprint. Take parts and ideas from Wayland, to make this fork modular. Determine, when you need applications to hook deep into Xorg, and leave it to that, without adding more unnecessary hooks. Also, see about Xenocara contributions what security measures are as restrictions, but make it easier to set permissions so applications which need them can easily use them. libxcb needs to be implemented into this and existing graphical toolkits more than before. There'll need to be a shim for libx, that will be its own equivalent of XWayland.
Instead of making shims for X11 from XWayland to Wayland, make shims from Wayland compositors and Wayland graphical toolkits to this Xorg fork.
I suppose if I squint slightly, I think what you're saying (albeit via a lot of rhetoric) is you want to understand how such a system would be designed?
Sure, OK -- is this just for educational purposes, or because you would like to contribute?
To try to answer question, it's because I believe, when one plans, everything comes out better, and it adds a process of thinking, which we usually think we know on first thought, and then it makes us think it out and we realize we didn't understand it as well as we thought, and it becomes clearer. It doesn't have to be complex, it could be a scratch sheet.
For instance:
graphical toolkit -> libx->libxcb
libx --> libxcb --> X server
libx shim -> libxcb -> X server
reparenting ---> hooks into X server
other essential feature ---> hooks into X server
Xenocara insipired feature---> not so restrictive that it allows dev and file permissions for drivers, users and software to access it
improved driver permissions, by not being overly complicated to --> X server
drivers --> layer? -> layer? how it interacts with X server
miscellaneous --> API --> X server
Or it would be a more primitive less flashy version of, with additional plans where it differs, such as for re-parenting hooking in, or having its own orange square:
The thought or plan could be completely different, as that's an existing example. For clarity, that diagram is an XWayland example.
I'm no good at programming, but if I could understand something, I could write about it. Also, libxcb didn't catch on, because it lacked documentation. So, it would be important to have a scratch sheet basic diagram that takes a minute to sketch.
As for fvwm, it has become dependency entangled, and there's already forks of it, one which has become a Linuxism. There's other window managers on the same basis of it and are light, like ctwm and other classical tabbed window managers. They have a few less utilities, though the main one missing is the one for the WM dock app.