No capabilities, or even a sane and useful way of adding capabilities with everything in ring 0, and the flat integer namespacing of users and groups just doesn't work for what userspace needs to do today - hence namespaces, which have introduced their own problems, because (no surprise) trying to graft a tree structure onto a flat integer namespace after the fact is a mess.
Virtualization tried to sidestep all that, but to make it fast the cost has been more driver interfaces to host ring-0 - remember what the original was? - and screwing around a whole bunch with particularly arcane facets of the core ring-0 security boundary, e.g. page tables.
It is a mess.