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Why don't more distros use this method?
(www.virtualizationhowto.com)
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Linux is a family of open source Unix-like operating systems based on the Linux kernel, an operating system kernel first released on September 17, 1991 by Linus Torvalds. Linux is typically packaged in a Linux distribution (or distro for short).
Distributions include the Linux kernel and supporting system software and libraries, many of which are provided by the GNU Project. Many Linux distributions use the word "Linux" in their name, but the Free Software Foundation uses the name GNU/Linux to emphasize the importance of GNU software, causing some controversy.
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Being able to doesnt mean its recommended. I played around with that in a vm and it looks like some DE use same parts of the config files. Which result into inconsistent themeing/UI. Like random wrong colors, icons and fonts.