I have been running EXWM (emacs window manager) on top of GNU Guix for a few weeks now, and while it’s not perfect, it’s the closest I’ve come yet. I also use eshell as my default shell, so except for when running icecat (Firefox), next (Common Lisp based webbrowser), mpv for the odd video, or alacrity when eshell is not enough, everything is just emacs buffers and it’s actually great.
I have almost the same setup, except use the vterm emacs package as my backup shell instead of alacrity - while vterm doesn't integrate with emacs as well as eshell (no redirecting into buffers/calling elisp functions), I prefer it to an external shell, as I can keep my emacs bindings in the shell and share the kill ring.
