The tricky part of doing this in production is cloning sandboxes across nodes. You would have to snapshot the resident memory, file system (or a CoW layer on top of the rootfs), move the data across nodes, etc.
Is this relevant?
https://codesandbox.io/blog/how-we-clone-a-running-vm-in-2-s...
Agreed, cross-node is the hard next step. For now single-node density gets you surprisingly far. 1000 concurrent sandboxes on one $50 box. When we need multi-node, userfaultfd with remote page fetch is the likely path.
If each node has its own warmed-up VM awaiting from startup, there's no need to clone across nodes.