> except a few 'blessed' distros that will then become industry controlled, and not Linux in spirit anymore
You know, I hear this a lot but seldom hear the details of how it might happen. Industry-controlled UNIX is the reason Linux exists - if you take the spirit away from Linux, it gets forked into another community project. Unless you're stripping it of it's GPL license, Linux will be "Linux in Spirit" until it stops being used altogether.
You can see systemd and it's history about how it hold power.
Linux has been making giant strides towards increasing accessibility and lowering the friction of adopting it as a daily driver, while preserving the freedom to choose any distro you want.
Forcing new users to babysit a second installation in a special VM would be wiping out decades of progress.