Aye, BSD jails have been around for a while, and the chroot jail has been a concept since I've been using *nix OS's.
But there wouldn't have been the hardware, resources, or depth of support available for the end user in the 2000s. There are still non-technical folks I deal w/ at work that don't get what a VM is...
they were not a thing that commodity hardware, but most importantly the target user, was really prepared to run at the time
same as virtual machines were a thing in the early 70s and client-server in the 80s, but not for the target market despite the industry thought so for some time