> If one wanted manageability and isolation, then they could run k8s and Kata Containers which uses virtualization instead of containerd.
There is a world that exists outside your own use cases (and gke). EKS provides isolation by default, just as one example I can pull from my own career. you can even get warnings out of the box if any process gets access to the host, and the typical convention is to lock these hosts down entirely. No need to access the machine at all and everything is isolated within it.
Generally the type of infra advice AWS provides is fairly sound depending on what you want to pay, but I assure you what you just said is not true everywhere.