Having root in a VM doesn't typically give you any rights on the hypervisor (at least not on eg Xen).
On a hypervisor, it's much harder for VMs to influence each other.
Linux containers (and docker amongst them) started out as convenient and reasonably performant, and added security later. One patch at a time.
Historically, hypervisors typically started secure and added performance and convenience over time.
(Very simplified. But I used to work for XenSource back in the day.)