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Don't allow privileged containers to be created. It's in the name that it's a security risk.

With Kaniko being able to build docker images without the docker Daemon I'm not aware of other use cases for " docker in docker

What's peoples experience here?

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kaniko is great but doesn't have feature parity with native docker build. Notably kaniko is missing everything related to BuildKit.

You can use standalone rootless buildkit building locally/natively and in cluster/container. You can use buildkit through docker too but docker is packing a runtime so standalone buildkit in cluster/container.

DinD is useful for vulnerability/malware scanning

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