not sure about the specifics, but in a traditional hypervisor, you get much lower-level control, hardware root access. you can create multiple isolations, each acting as its own server.

when you rent from amazon, you’re basically running on a hypervisor inside a large server. there are also security, performance, and file system access considerations.

btw, i like proot, pretty handy, lightweight method. haven’t used it in a while.