I did not see anything special that would make it rootless. That seemed to be a point made by the submitter.
I made my own CPIO library: https://github.com/desultory/pycpio and one of the main goals was this behavior, so I could create CPIO archives with device nodes without privileges. It's really as simple as writing some bytes to a file saying "when you extract this, create this device node". It's not like any archive actually has a device node, just instructions for where to put them, and what properties they have.
Certainly, you can't extract these archives as non-root, but you have to go out of your way to make an initramfs have non-root privileges.
Another related one is about installing grub into an archived filesystem or disk image. Should be trivial, right? But most instructions for this require mounting it, which immediately means you need SYS_ADMIN and therefore a privileged container in your CI setup.
>Note this is rootless, we don't need to re-create the filesystem tree locally or use fakeroot to create special file in the archive.