Profiles don't work well on Apple TVs at all though. You choose a profile on the device, and then you still have to choose a profile whenever you launch any given streaming app as well. I don't know what changing profiles on an Apple TV actually does.
I don’t know I think Apple should be able to keep COW filesystems for every user to apply atop a read only file system. Unique apps, unique settings (maybe unify tv settings into admin panel) and no cross-contamination or need for app owners to switch profiles. macOS software doesn’t need explicit understanding of profile switching, neither should iPadOS software.