Containers still have some risk since they share the host kernel, but they're a pretty good choice for protection against the types of attacks we see in the JS ecosystem. I'll switch to VM's when we start seeing container escape exploits being published as npm packages :)
When I first started doing development this way it felt like I was being a bit too paranoid, but honestly it's so fast and easy it's not at all noticeable. I often have to work on projects that use outdated package managers and have hundreds of top-level dependencies, so it's worth the setup in my opinion.