It's designed to make future linux easier to run out of the box on Mac silicon, not really intended to be run as linux in a VM. If you want vms, use UTM https://mac.getutm.app/
The very cool thing about Tart is how it uses OCI for OS images, so you can use your existing image registry infrastructure to host and pull down OS images.
These are more CI-oriented but I like how that makes it easy to manage state with them.
If you're focused on Linux VMs and maybe not on GUI stuff (although I'm sure you can make that work), Lima seems to be the go-to in the user 'community', as it were: https://github.com/lima-vm/lima
If you use ARM guests on Apple Silicon, you should get good perf just like with stuff in the OP. (Like UTM, Lima is based on QEMU.)
I'm aware, but considering this provides virtual apple hardware to run macos inside the vm, I'm curious if this can also be used to install/run asahi inside the vm.
My motivation here is exploring asahi on my MacBook inside a vm without needing to install it on the metal and modify partitions on the disk
I think you can still take advantage of paravirtualization without running an OS built for Apple Silicon specifically. You can emulate peripherals and the motherboard and stuff without emulating the CPU, so you would probably do better just to run the regular ARM variant of whatever distro.
Both Arch and Fedora, which some releases of Asahi are based on, have regular, shmegular ARM variants.