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Application containers vs system containers.

Lxd is a daemon for lxc, which last I checked was focused on creating system containers.

This means it probably can't run OCI

Both can run systemd in containers. Podman can be used for system containers. Podman can start containers without root privilege while LXD is a daemon that needs to run as root.

LXD is, but LXC can run rootless containers just as well.

In this sense, it's similar to running the Podman-compose daemon as root, but rootless containers on it.

One can create a cluster of system containers with LXD, as opposed to local application containers (podman).