Doesn't a compiled executable do this?

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not all languages compile to static binaries.

many compiled binaries still rely on os-level packages.

Not really, it may pull in more dependencies and scatter config files on your file system. Many which won't necessarily be removed if you uninstall it.

Docker let's you mount a virtual FS for the container itself and pass through portions to your own FS (for data sharing for example).

I get it. It's probably a matter of me self hosting everything anyways.

Yeah, for me that is what I use Docker for. I never understood it but used the latter end of last year to learn it (and learn new things with it this year as well)