Yes, it's possible already to run K8s entirely inside a system container deployed with Docker + Sysbox. It's as easy as "docker run --runtime=sysbox-runc -it some-image" and running kubeadm inside to setup K8s. We also have images that come preloaded with K8s to make it easier.
Here is a demo video: https://asciinema.org/a/V1UFSxz6JHb3rdHpGrnjefFIt?speed=1.75
Having said this, K8s is very complex and while its most common functionality works inside the container, we've not yet tested it all.
Here is a doc that describes this in more detail, including what is supported and not supported at this time: https://github.com/nestybox/sysbox/blob/master/docs/user-gui...