I thought this too, but if the goal of the control plane software and blade host OS is solely to create VMs and not to actually be a general-purpose OS, this probably doesn't matter as much?
If the core idea of Oxide is true and putting together a bunch of PC comparable yourself with a whole bunch of complex and expensive software only to then have a huge maintenance and security nightmare then why wouldn't enterprise want to switch from Dell and co.
The point of a startup is to disrupt the current market. And they are trying. Lets see how they do.