>What if I need cron in my docker container? And ssh? And a text editor? And a monitoring agent? :P
How are you going to orchestrate all those daemons without systemd? :P
As you mentioned, a container running systemd and a suite of background services is the typical use case of LXD, not docker. But the difference seems to be cultural -- there's nothing preventing one from using systemd as the entry point of a docker container.
fwiw I recently bootstrapped a small Debian image for myself, originally intended to sandbox coding agents I was evaluating. Shortly after I got annoyed by baseline vim and added my tmux & nvim dotfiles, now I find myself working inside the container regularly. It definitely works and is actually not the worst experience if your workflow is cli-focused.