Criminally underused indeed. I have no idea why it's not more popular for 'average' users/orgs. I don't know what issues may come up with scaling this up, but in our small org we've been running 20-30 (mostly unprivileged) LXD containers in production for several years now for all sorts of intranet and external-facing services (auth, DB, web, etc). Sure, it requires a bit more thought to set up than Docker, but it's well-documented (for most people's uses at least), secure, stable and lightweight.