It looks both more convenient and slightly more secure than my solution, which is that I just give them a separate user.
Agents can nuke the "agent" homedir but cannot read or write mine.
I did put my own user in the agent group, so that I can read and write the agent homedir.
It's a little fiddly though (sometimes the wrong permissions get set, so I have a script that fixes it), and keeping track of which user a terminal is running as is a bit annoying and error prone.
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But the best solution I found is "just give it a laptop." Completely forget OS and software solutions, and just get a separate machine!
That's more convenient than switching users, and also "physically on another machine" is hard to beat in terms of security :)
It's analogous to the mac mini thing, except that old ThinkPads are pretty cheap. (I got this one for $50!)