Docker is a lot more than just an unprivileged user. In particular, it comes with a seccomp filter. A lot of LPEs are blocked by that filter. Docker is actually a quite decent security boundary - in this case the attackers did not attempt to subvert docker by attacking the kernel attack surface, they attacked a weak configuration via the docker socket being mounted.
The reason you don't use a "grown up VM" is because it's significantly more difficult. Which VM? Firecracker requires KVM and a guest operating system - so how are you getting things in and out in a way that doesn't violate security? That's real work.
gVisor is great and my recommendation, certainly, but the difference between "nothing" and "docker" is actually pretty huge imo.