An unmodified Ubuntu cloud image is a valid (though basic) Portal app and can boot using CloudInit. Real world apps store data on the separate "user data" drive that is attached to all app VMs, which makes them upgradeable. And they almost always have a web interface for the user to interact with.
They can also use the Portal metadata service to interact with the system. But for the most part apps just receive raw TCP/IP traffic or proxied HTTP traffic and work normally.
We began working on Portal before Sandstorm was public, but I can tell you this is the first time I've been happy to see other people working on the same idea as myself. Decentralizing the internet is more of a mission than a competition.
Also, we expect to be able to run Sandstorm as a Portal app, so you could run many Sandstorm apps inside one VM, assuming they're okay with that.
I'm definitely OK with that. :)
I love your LAN house, btw. We're also insanely hardcore PC gamers who think LAN parties are the most fun thing in the world :-)
But, yeah, for a fully-dynamic web site served to a large number of users, Sandstorm currently isn't well-suited. It'll get there eventually, but given that other platforms (like Portal) already cover this use case pretty well, we wanted to focus on the interesting things we can do with fine-grained containers.
In the case of apps that publish public URLs (like WordPress) they can choose to use Portal's single sign on or not.