I use either QEMU VMs or my own sandbox-run [0] (a bubblewrap wrapper) for isolation, depending on the use case.

[0] https://codeberg.org/Grauwolf/sandbox-run

The base system utilities have gotten better with the years. I recommend using them.

https://www.skyforge.at/posts/an-introduction-to-jails-and-j...

I've been happily using ruario's createpkg[1] for years now.

[1] https://gist.github.com/ruario/11246070

It seems that somebody already started this https://github.com/picosync/workingDraft

The problem of getting away from FAT (for Windows compatibility) and file permissions/accessibility with multiple users.

While I like the idea and see the benefits I would feel uncomfortable with people watching over my shoulder while programming.

While I know that feeling you could minimize it by streaming just your browser window or some other part of the desktop.

I think that the Artistic License would fit very well.