Containers still use the same kernel, have access to the same filesystems (in practice), same devices, same ioctls, etc. There can be a lot more separation done in the future, but right now, you definitely gain a lot by isolating your containers using selinux.
Even with virtual machines, you want any breakout / external write vulnerability to be contained. That's why libvirt/kvm relies on selinux (or apparmor) for system protection and for cross-vm protection (https://libvirt.org/drvqemu.html#securityselinux)