tl;dr, yes, it does.

Containers are nothing like VMs, and containers in Linux are basically a combination of a feature called Cgroups, which allows to restrict the resources (like memory, etc.) available to a process or group of processes, and namespaces. Namespaces are a construct in which certain namespaced resources are separated from each other, and processes can only see those belonging to their namespace. A simple example is a mount namespace. When you launch a container, you see a / directory which is not the root directory of your system.

Now, the problem is, that not all the resources are namespaced, so there is still quite a lot that processes within containers can do interacting with the main system resources, especially if they are root.

A root process within a container generally can do lots of things that the actual root process can do outside of it. For example, mounting parts of the filesystem (if you run with --privileged), loading kernel modules, etc. Podman can run rootless, in the sense that it uses also User namespaces, meaning a user 0 (root) inside a container is actually mapped to something else outside, but also docker nowadays can do the same.

So yeah, in general, running the applications with the less amount of privileges is a good idea and you should do it whenever you can. Even if you do need some privileges, you should add only the Capabilities needed, not just go straight to root.

It means that if someone breaks out of your container, they can only do things that user can do.

Can that user access your private documents (are these documents in a container that also runs under that user)?

Can that user sudo?

Can that user access SSH keys and jump to other computers?

Generally speaking, the answer to all of these should be "no", meaning that each group of containers (or risk levels etc) get their own account.

Imagine your containers as very lightweight mini-VMs. Would you run everything as root in your virtual machines? Containers aren't really that different to classical VMs from an operations point of view. You have a different attack surface, but it is still there, and running as a non-root user inside the container reduces this attack surface, and should IMHO be the default. Privileged containers and users may be required for specific purposes, but should not be the norm, if possible.

I have seen this post and decided to respond via a separate blog post. https://loudwhisper.me/blog/containers-isolation/

The short answer is that yes, they do. And yes lowering the privileges of the user helps in avoiding container escapes, which basically makes the other advantages for containers valid. You can, however, achieve the same using (relatively obscure, imho) systemd settings, running with flatpak etc. Namespaces + Cgroups + Seccomp + Capabilities = better security. Containers make it easy to use all of the above.