But to your point, I don't think I ever said machines don't need a management control plane (I develop a bare metal management control plane for $DAYJOB, I'm fully aware of what it entails!) I'm saying that you don't need to insert a VM layer between the bare metal and containers: Having k8s run on the bare metal OS would be ideal IMO.
But since Oxide seems to be Illumos-based, that's basically not possible... At least not for containers as most people know them (ie. with linux-based docker images.) Heck, even if running a VM layer between the OS and the containers, it looks like running your own hypervisor prevents you from (currently) having nested virtualization, which makes certain k8s workloads a lot harder.
I get what you're saying though, and you're right that certain workloads like Kubernetes on the metal that can take advantage of hardware wouldn't be a good fit for Oxide today. We could decide to change that in the future, but I don't see that as a priority for Oxide given all else we have to build first.
Interestingly he has mentioned that in the podcast and basically said, the industry has standardized on VM and in the kind of environments they run, there just isn't a good way around it.
But yeah, a world where Illumos based bare-metal containers had become the standard would be a nicer. But its not where the market is.