Why not? The only overhead I can see is some storage and memory overhead due to duplicate libraries, and some possible small startup time penalty? Containers are just normal Linux processes after all, it's not like there's a VM involved
Just to the degree that there's more machine code competing for the same limited page cache... nothing about having multiple versions of one library is worse for cache than having the same amount of machine code across different libraries. It's not ideal, but considering how lean you could make the host system, it's a minimal cost.
It’s a project that uses buildroot to create a small Linux for a specific device that’s only used to start a container.
I’ve wanted to try it sometime after getting headaches with both Buildroot and Yocto. Particular adding more libraries tends to break things.