Not suggesting using it myself, merely saying this is where Microsoft is going with it. They don’t have a cross-platform XAML render. They’re trying to abstract away the OS in .NET Core, and XAML no longer fits the bill.
PWA are multiplatforms while C# still hasn't a first party multiplatform GUI toolkit. Which is shame, because the dev experience in XAML+C# is really good, and Silverlight out of Browser was exactly that.
No. Xamarin focuses on mobile apps, not desktop. Also, you have to chose between Forms which is ugly everywhere, and Native which require a non trivial understanding of each underlying platform.