Since the GPU libraries are hosted on the node, privileged flag is typically required to make that possible. I'm sure there will be improvements to not require privileged, but today it's mostly a requirement to get anything useful out of containers tapping into GPU.
That said, if you set the allow-privileged flag to false GPU drivers will still be installed but you may not be able to make use of the cuda cores
That said, if you set the allow-privileged flag to false GPU drivers will still be installed but you may not be able to make use of the cuda cores