Well the alternative is exchanging data, not code. Actually this was the initial idea on the web, hyperlinked data. Look where that brought us. Maybe we could devise a better model with a client (code) that is simple enough and universal enough, and the server providing/receiving only data and not code? That is, instead of me running the publisher's code on my terminal, i run my code on the publisher's data, exchanging data with them. I am not aware of anything to that effect that is universal enough to replace the web. Thus, sandoxing untrusted code as being the way forward.
I think the way forward is to stop worry too much. Like you really gonna be worrying running "flight simulator". I think it is a FUD designed mostly to support big and cloudy providers. Those are the real entities one should worry about. They spy 24x7 .