Responding to request from TOC meeting last week...
I think that Day 1 and Day 2 provisioning is key area for CNCF to cover; however, I think that the space is transforming in several different ways so I would suggest more review by the TOC. Obviously, I have an interest in this since I'm a lead on Digital Rebar. For that reason, I'm reluctant to push against or pull for related projects.
For LinuxKit specifically, I think the emphasis on immutable operating systems should be considered carefully. There are many benefits to this approach but they cannot be applied generally to legacy workloads and management tooling. I believe that operational adoption is accelerated when tooling fits well with both new and existing ops models.
Again - I'm happy to show how we solve this problem with Digital Rebar at a TOC. It's not just about physical provisioning - managing server life-cycle in multiple infastructures is a key design requirement. Tooling that does not address the full life-cycle may actually make management harder over time.