The buzz word is not aimed at the regular gaming nerd. It is aimed at gaming nerds who are also developers. Universal blue, the project behind Bazzite, Bluefin, and Aurora, aims to market to developers to use their systems first, on the basis of the tech backend. So then they make the cool FOSS things that the nerd public can use. Cloud native just means that something is engineered and made to make use of the container based devops pipeline.
For example, an atomic immutable OS that is meant to be developed and distributed via the container infrastructure (this is what Universal Blue is). So, instead of working on making an OS the regular way, collecting packages and manually connecting and tidying up absolutely every puzzle piece so it fits together, then pushing it through the installer packaging wizard, etc. This OSs are made by taking an already existing distribution, in this case Fedora atomic distros (but this is by no means mandatory), then customizing some things. Like installing libraries, applications, firmware, kernels and drivers. Then putting it all into a container image, like you would do with a docker or a podman server image. This way, on the user side, they don’t need to install the OS, instead they already have the minimal atomic system handling framework and just copy and boot into that OS image. This automates a lot of the efforts required for bundling and distributing an OS, and it makes new spins on existing distros really fast and efficient to make. It also means that users don’t need to be tech savvy about stuff like directory hierarchies or package management, and updates, installs, upgrades can all be automated to the point of the user barely even noticing them.
On a similar note, these distros, as development workstations, are usually pre-configured to make use of a container based dev pipeline. Everything is flatpacks and development is handled all via docker, pods, etc. Keeping the system clean from the usual development clutter that sediments over time on a traditional development cycle. As a happy coincidence, this makes the dreaded “works on my machine” issue less prevalent, making support of software a tad easier.
Start here for everything Universal Blue. Read here to see how the sauce is made.