The only issue I've had is their static snapshot of arch has some inconsistent dependencies from time to time that need manual handling, and occasionally they are missing a cert change so you either choose to trust the package from their server anyway and install it with a cert skip, or do without.
Aside from that, everything seems to work well, and if there were any problems, well I can always just reboot with the SD card removed.
I was worried about how /etc might interact with their stuff, but seems fine so far, and I assume they left it writeable for a reason. I do do backups just in case.
If you want to repackage distro binaries without recompilation, you can have a look here: https://github.com/flatcar/sysext-bakery/pull/74 There are two tools, one can bundle the needed libs in a separate folder, and the other one works more like Flatpak and uses a full chroot. Since you already know what files are needed at runtime I think you could try the first approach, otherwise the second might be easier.