The real truth is that the difficulty of containment is proportional to the interface that is available to the contained process. You don't need VM or hypervisor technology to build a virtually unbreakable container. You only need to prevent the contained process from using any syscalls at all.
Hardware only seems better at this kind of stuff because (a) it's harder to find errata in hardware and (b) the syscall interfaces of commonly used operating systems are much larger than what the hardware offers, and were developed without keeping containability in mind. It is a well known fact that tacking on security features in hindsight is problematic.