An unattended server with inferior encryption and data at rest properties isn't exactly an improvement.
Browser exploits are mitigated by having a sufficiently powerful cpu on the server to be running something Qubes-like.
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Virtualization works fine on existing mobile hardware. Implementing that is not a hardware issue.
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Virtualization also isn't the only good approach to tight sandboxing, and is used for compatibility not security properties.
End of conversation
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