Is that the case, though? My understanding was, that even if I run a docker container as root and the container is 100% compromised, there still would need to be a vulnerability in docker for it to “attack” the host, or am I missing something?
The core of the problem here is that process isolation doesn't save you from whole classes of attack vectors or misconfigurations that open you up to nasty surprises. Docker is great, just don't think of it as a sandbox to run untrusted code.
Attacker now needs a Docker exploit and then a VM exploit before getting to the hypervisor (and, no, pwning the VM ain't the same as pwning the hypervisor).
Not only does it allow me to partition the host for workloads but I also get security boundaries as well. While it may be a slight performance hit the segmentation also makes more logical sense in the way I view the workloads. Finally, it's trivial to template and script, so it's very low maintenance and allows for me to kill an LXC and just reprovision it if I need to make any significant changes. And I never need to migrate any data in this model (or very rarely).