Along with Proton, Steam Play, the Steam Deck, Easy Anti-Cheat support for Wine, Battleye suppport for wine, FSR and a bunch of other stuff, this means that gaming is getting more viable on Linux.

It isn't there yet, but it's close.

Does it? Isn't this just re-implementing stuff that works in X11 to work in Wayland now?

Yes, but the vast majority of games on Linux now run through WINE and the world is moving to Wayland. (notably Valve's Gamescope which will be used in the Steam Deck[0]).

[0] https://github.com/Plagman/gamescope