Earlier quoted context omitted.
`busybox whoami` is probably fine, but having to write `busybox ls`, `busybox grep`, `busybox cp` etc. would get tedious quickly. Shell aliases don't solve all problems, even if you do: alias rm="busybox rm" alias xargs="busybox xargs" # etc. you still have to write `xargs -exec busybox rm`, because xargs won't use the shell alias. But the main problem with this approach is that POSIX and LSB require certain binaries…
Well /bin/sh is also busybox, so I think you'd need #!/bin/busybox sh exec /bin/busybox ls ?
Actually this observation invalidates the whole setup. Because even though you could define /bin/sh itself as:
#!/bin/busybox sh
exec /bin/busybox sh
Then you still cannot use #!/bin/sh in any other shell scripts, because for historical reasons the interpreter of a script is not allowed to be another interpreted script, it must be a binary. So /bin/sh pretty much has to be an actual binary.