I've been thinking about something similar by using LXC with minimal capabilities. Using git, etc.. with 'stack' specific allowable file modifications (configuration and what not), is this how dotcloud works (minus the distributed FS and flow replication for HA)?
Yes, we use container technology. We were the first to do so (first prototypes in 2008) although others are catching on. That's not the key differentiator of the platform, though, anymore than Xen was for EC2.