Now system designers have to very seriously consider this risk when building sandboxes or other forms of process isolation. Say the attacker controlled process is in a sandbox and would normally be assumed safe.
Why would you think otherwise?
Yes, they do it with high-speed probing of the amount allocated GPU memory. This requires access to native APIs (specific OpenGL extensions in this case). Like you said there seems there would be simpler ways to achieve this, but the demonstration of this side-channel is still very interesting.
Varying the size of the textboxes might not help because the rendering engine of browsers can have a memory allocation per letter for example.
Is that still the case, and would that unintentionally avoid this side channel since the global GPU perf stats wouldn't necessarily see a difference on small allocations?
If the renderer uses a glyph atlas, then there won't be any changes in GPU memory used as you type in a text box. There consequently won't be any time used to update glyphs, as they are already in the atlas (ignoring CJK locales for a minute).