I'm not familiar with that concept, though I am working on an umbrel install on a proxmox server.
That's not as easy as what you're seeking to propose, though. Hmmm...
Discussion
Indeed, it is a fairly novel concept but one that has been proven out by Urbit (urbit.org) over the last decade.
The core innovation that makes it possible is the Solid State Interpreter (see the vaporware site for links) - something like an event log-bssed virtual machine that is extremely simple and durable. end users "just start the binary" and never have to do any setup or maintenance.
A docker image is probably the closest thing that approximates the concept (though it's different in a lot of very important ways)