Very interesting. Thanks for sharing! Depending on how this is done, it can potentially disrupt on-demand cloud services, like AWS EC2/Lambda. But there are problems that would have to be solved:
Ensure strict isolation of DAPP containers - Access only specific local resources. Ensure someone cannot develop malicious DAPPS intended to harm/scam other people on the network.
Setting caps/limits - Allow network participants to statically or dynamically adjust how much of their resources they want utilized.
Speed - Running a function on the blockchain must be fast, very fast. Otherwise, the types of operations will be limited to things that are not time-sensitive. Like batch processing work.
I'm sure there are much more problems than this, but just a few things that I can think of.