Does that mean that Docker for Windows will no longer require Hyper-V? And therefore will be available for Windows home editions?
They could either go the syscall emulation route (as in current WSL), or possibly the "thin hypervisor" route, the fact they're talking kernel versions makes me think that may be what they're planning...
(I work at Microsoft but have no inside knowledge on this; just speculating.)
Whilst it doesn't explicitly mention Virtual Machines or Hypervisors, I'd read this as making use of that kind of technology with some additional tech. for interop with Windows to the level of WSL currently.
EDIT: and here's the confirmation https://devblogs.microsoft.com/commandline/announcing-wsl-2/ it's a VM