This kind of system will suffer from the ratchet problem. A single bug that negatively impacts state is no longer fixable by rebooting. Instead, you have to format/reinstall. Unintended state becomes permanent, and upgrade paths constrained to the point where you must do intentional damage. I'd also be leery of fragmentation.
The project is falling into the "simplification trap", where all it's doing is moving inherent complexity around (which eventually requires users to do a bunch of work-arounds) rather than eliminating it (because inherent complexity can't be eliminated; only needless complications can be eliminated).
In theory, this sort of setup would be nice in a perfect world, but in the real world of buggy software and faulty hardware and cosmic rays and failing network connections, it's a disaster waiting to happen.
The project is falling into the "simplification trap", where all it's doing is moving inherent complexity around (which eventually requires users to do a bunch of work-arounds) rather than eliminating it (because inherent complexity can't be eliminated; only needless complications can be eliminated).
In theory, this sort of setup would be nice in a perfect world, but in the real world of buggy software and faulty hardware and cosmic rays and failing network connections, it's a disaster waiting to happen.