If by virtualization you mean VMs, gvisor can be more performant than those based on my experience. For example, AWS claims a p0 coldstart time of ~500ms using Firecracker but I know firsthand that applications sandboxed by gvisor can be made to cold start in significantly less time (like less than half): https://catalog.workshops.aws/java-on-aws-lambda/en-US/03-sn..., and you should be able to confirm this yourself by using products that leverage Gvisor under the hood or with your own testing. I actually worked on this (using gvisor, but working on adjacent tech) for years...
> Have we broken out of containers yet?
Sure, how about https://scout.docker.com/vulnerabilities/id/CVE-2024-21626 where runc (Docker) exposed the host filesystem to containerized applications? Precisely the kind of exploit gvisor is designed to prevent.
I'll note that a lot of people are thinking about how to reduce sandbox overhead in multitenant PaaS and it's one of the things I want to eventually address in my own startup. But I think blindly hating on gvisor because of a nebulous dislike of overhead really is misplaced without considering its alternatives.