Thinking more about this a bit, one immediate issue I see with adoption is that the idea of launching each container in its own VM to fully isolate it and give it its own IP, while neat, doesn't really translate to Linux or Windows. This means if you have a team of developers and a single one of them doesn't have a mac, your local dev model is already broken. So I can't see a way to easily replace Docker/Compose with this.
It translates exactly to Kubernetes though, except without the concept of pods, I don't see anything in this that would stop them adding pods on top later, which would allow Kubernetes or compose like setups (multiple containers in the same pod).