I think you're projecting a bit here. This is not only a well known approach, it's implemented in many ways.
> You can not take a single file in a folder and hand it to an executable
Here's a few things that achieve this that I directly used recently (and I'm sure there's way more): selinux, apparmor, linux namespaces, AWS IAM roles, path mapping over RDP, flatpak portals, android data, google drive sharing, google photos albums, windows ACLs, probably some more...
The idea is alive and doing well, but it can't be applied the same way it was in the military... because people don't care enough and they don't have a good reason to care. "disable selinux to make your app work" is a meme at this point, because labeling your system is a HARD problem. But the idea that Infosec in general is not aware of the approach is silly. The principle of least privilege is probably the most known idea everyone's aware of.