Seems like it could just be getting at some phonetic encoding, or even raw audio information. The grammatical and vocab transformations could be accounted for by an imperfect decoder.
Lol. IMO the difference between an C and Assembly (as between vacuum tubes and the abacus) is really a difference in power, since it allows the same program to be implemented on different architechtures. It's only fair to start calling things convenience wrappers once you get past C. And often enough, an abstraction aimed at convenience leads to a reduction in expressive power.
The article is presenting a Scheme interpreter running in Scheme, compiled to WASM, not a Scheme compiler, but your idea is also cool. The WASM API apparently doesn't need a pre-made file as its input: you can pass raw bytes generated during runtime into the Module constructor, so it would be totally feasible.