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Yes, I think VSC sounds right. I know nothing about it, but I have seen mention of it made here and there.
"I don't think we will have them on L1"
Hmmm. Maybe. But if Hive is ever going to have any of the functionality even remotely close to say ETH and its smart contracts, it has to be L1. Then, on top of that functionality, any L2 token has what it needs.
If that day ever comes, Hive Engine would become obsolete, I believe.
Note: I intentionally say if that day ever comes, because I have been reading about this coming, at some point in the future, since I became active on Hive in early 2018, closing fast on 6 years ago ...
I could be wrong, but that is my current understanding.
ETH has many issues (especially with the high fees) because of having smart contracts at L1 and having all the nodes to run all of them, regardless of the type of smart contracts. That's why all the L2 EVM chains came into existence which had the main mission, at first, to be the low-fee alternative to Ethereum.
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