Not what I meant. For example, on most mainstream linux distributions systemd fulfills the role of privileged userspace layer that I was referring to there.
> truly privileged hardware modes
The presence of a hypervisor doesn't imply paravirtualized hardware. Neither does the presence of an entire OS on modern GPUs imply a reduction in kernel responsibilities. Ring 0 is still ring 0. The OS is still managing and abstracting hardware in the same way that it always was.
That doesn't mean that these other things aren't concerning developments. Particularly having an entire unauditable shadow OS running on the CPU is an incredibly dystopian scenario that almost seems unbelievable. But technical accuracy is important when discussing these things.