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Honestly, thats a really bad take. Yes obviously, you should not let attackers access the terminal, but there are linux servers that rely on multiuser operations, like Servers that are meant for terminal access, like HPC.
Then services get hosted via container these days, so even with rootless containers you get root access if you only get RCE on one service. And even if there are additional VMs for more isolation between host, you still get root on the whole VM.