Sanitization-wise it's already possible to strip scripting from SVGs and anything else you want, it's just that a library like DOMPurify to avoid ballooning in size doesn't include say a preset to handle the extra parsing necessary to make them behave like browsers treat IMG embeds, so it's up to devs to add their own.
But yeah, a world where a simple attribute to achieve the same effect as an IMG embed but for inlined SVGs would be nice.
Think of prior technologies like display postscript and .doc, where a data format ended up a with big problems from its embedded "exec" type features.
There is iframe srcdoc if you want to do this.
By turning it into a document boundary when you use the sandbox attribute, kinda similar to loading an svg file inside of an <img> tag.
and yeah you could get 90% of the way there with an iframe srcdoc, but I was imagining some kind of cross between an <iframe> sandboxed into its own origin, and an <img> where it still has its own intrinsic size.
but it was mainly just a throw away thought, I've not really thought it through much deeper than that.
does that work for you?
If you're going that route, add CSP headers on HTTP level to disable scripting, and/or host the SVG on a separate domain that has nothing valuable, or use data: URLs.
But also so that setting up a CSS transform: scale(10000) can't take over the entire viewport, it'd be constrained to an iframe-like boundary (exactly like an <img>) but still remain as an inline SVG, sort of like an <iframe srcdoc>. So scripts on the parent/host HTML document can still manipulate it like the rest of the DOM, but the inner <svg> elements are all "inert" for want of a better word.
Actually I don't know off the top of my head what happens with an SVG file inside of a <img> when it references external images (either cross-domain or not.) I know scripts and animations get disabled, so I'd take a guess and say some CSS gets blocked too.
Again I've not really thought terribly hard about it, or if it's actually useful at all, and I'm betting it'd be filled with even more foot-guns than there are right now. I'm just thinking out loud.