This is great to see, but also really frustrating. I see Apple pushing to make iPadOS feel more 'real computer', but these sorts of basic Unixy workflows still feel very hacky, particularly when it comes time to save things to the 'File system', as it were. I look forward to a day when I can someday actually use things like XeLaTeX and Pandoc on an iPad to accomplish my actual work, but for now, I'm finding myself editing Markdown and TeX now, and compiling later. Not great, but good enough.
I've often wondered whether Apple could do well by doing something similar to Crostini on ChromeOS, to allow these things to actually work as intended, but without impacting security. But that also probably doesn't sell software as effectively, as free software doesn't pay Apple's cut.
They could very well steal the WSL idea from Microsoft and make something similar. Currently there is iSH which runs certain Linux utilities unmodified, but I'd love to see first-party support.