This is, btw, different than Solaris Zones, which give you a complete new user management for each container. They're very isolated. Zones have had some exploits to get out of the Zone, but they're pretty secure. LXC has started moving towards a more secure design but it will take years (IMO) to get LXC actually in production for _shared_ hosting.
See:
https://www.suse.com/documentation/sles11/singlehtml/lxc_qui...
Security depends on the host system. LXC is not secure. If you need a secure system, use KVM.
http://www.funtoo.org/Linux_Containers
As of Linux kernel 3.1.5, LXC is usable for isolating your own private workloads from one another. It is not yet ready to isolate potentially malicious users from one another or the host system. For a more mature containers solution that is appropriate for hosting environments, see OpenVZ.
http://lwn.net/Articles/515034/
"Containers are not for security", he said, because root inside the container can always escape, so the container gets wrapped in SELinux to restrict it ... A number of steps have been taken to try to prevent root from breaking out of the container, but there is more to be done. Both mount and mknod will fail inside the container for example. These containers are not as secure as full virtualization, Walsh said, but they are much easier to manage than handling the multiple full operating systems that virtualization requires. For many use cases, secure containers may be the right fit.