I have used both lxd and podman.
[1] https://ubuntu.com/blog/lxd-virtual-machines-an-overview
[2] https://developers.redhat.com/blog/2019/04/24/how-to-run-sys...
LXD is a management layer over LXC and Qemu(KVM?). LXC is all about system containers. The Qemu support is a recent addition [1]. LXD supported only LXC system containers until then.
> Containers you run with docker and podman are fully capable of running multiple processes
Yes. I have done this. But it was very unwieldy - probably because docker, podman etc weren't designed to run system containers.
[1] https://ubuntu.com/blog/lxd-virtual-machines-an-overview
In addition, there are orchestrators which can run LXC containers (LXD is a management layer over LXC). Hashicorp Nomad is noteworthy.
Added later: K8s runs OCI containers. All OCI containers I have seen are application containers. I don't know if OCI specification supports system containers.