Nice to see this work! I experimented with this for exe.dev before we launched. The VM itself worked really well, but there was a lot of setup to get the networking functioning. And in the end, our target are use cases that don't mind a ~1-second startup time, which meant doing a clean systemd start each time was easier.
That said, I have seen several use cases where people want a VM for something minimal, like a python interpreter, and this is absolutely the sort of approach they should be using. Lot of promise here, excited to see how far you can push it!
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simonw seems like he's always wanting what you describe, maybe more for wasm though
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