It'd definitely be a harder sell for third party software to require a privileged container and /dev/kvm mounted when you run it in your environment, especially since nested virtualization is largely unavailable in AWS. It also requires that the correct kvm kernel module is loaded, etc.

However, if it was a product that required virtualization and that was recognized as a requirement, then also distributing a docker image that could do it would probably be useful for people in the "and if you don't have virtualization infrastructure, but have container orchestration and nodes that support virtualization, our service will also work in a privileged container" camp