I just upgraded to creators update, with latest WSL.
The good news
Postgres can now be installed inside WSL and run as a service, no need to run it on the host 
. Overall everything is much more polished, you can see tasks that are running in WSL in the task manager, it feels like one cohesive unit.
The not so good news
Filesystem access is still terrible, in fact this round of testing on my new computer (that uses bitlocker) gives me 35 seconds to run bin/rake routes, the same command takes 3.2 seconds on the same computer under vmware.
My recommendation here is to keep observing, but still use a VM for now for any real dev work needed.