Similarly, a filesystem's just a data structure that happens to be on disc. You can mmap your harddrive and let the host hypervisor handle swap, preemption etc.
It's similar to a process contract, but with slightly different boundaries
This is all unnecessary overhead and complexity, as the OS doesn't really mediate hardware access in this case.
But you're right on some points, it's not really more secure, but there's a hell of a lot less complexity where things can go wrong.
The point that makes this different from an OS is that there's no shared service, no syscalls to do that stuff -- just subroutine calls -- and no timesharing (except at the hypervisor level). It's just a single runtime running on hypervisor direct against the virtualized hardware.
Because, yeah, all this work has happened in hardware in the last 30 years to make that possible, but we still treat the operating system as the best unit of resource sharing. When in fact it's kind of a jack of all trades master of none. If you're booting a whole linux kernel -- with its giant framework built to co-tenant a pile of applications and users -- just to run one process, there's definitely something to look at there. Even if the unikernel space itself is relatively immature.
You don't need to emphasize the "vibe coded every time you need them" thing. That's not what anybody was being talked about in the article. The "vibe coding" piece is pointing out that the missing pieces in the ecosystem can be more rapidly filled in now because of agentic tooling.
Well, here is your actual OS then. You named it "hypervisor", and changed the system interface, but it's still there, revirtualizing the access to hardware and ensuring separation of different users/applications/unikernels.
Or if you're more familiar with embedded, like a BSP or RTOS
Unless you're literally running a single application on a dedicated piece of hardware in which case... yeah, sure, you can do the OS-as-a-library schtick. But you could do it 10 years ago, too.
The point is all the other things: total number of lines of code, permissions and security, memory management, drivers, process mgmt, it all changes.
I do know that AMD has done more in this space. When I worked at Google there were (other) people on the Stadia team doing this. And some open source bits out there that I've seen, including from AMD.
Unfortunately, my real world work... and most real inference etc work others are doing... is on CUDA/NVIDIA.