Earlier quoted context omitted.
The real question is why Sun didn't succeed in leveraging this technology with their implementation of zones.
To be honest - I think it's a timing thing - virtualization wasn't popular initially but VMWare did a great marketing job. Then any hyper-visor became acceptable. Now - VPS-style containers are becoming acceptable. IE: Docker.
Being too early can kill you. If you think your idea is awesome but too early, my advice is to keep trying for as long as it takes. Docker was not my first attempt at solving this particular problem :) [1] [2] [3]
[1] https://bitbucket.org/Foi3GraS/dotcloud-fork/commits/1
[2] https://github.com/dotcloud/cloudlets/commit/0af885a5266fba7...
[3] https://bitbucket.org/dotcloud/vm2vm/commits/2a34438989fbff0...