I expect startup time and memory usage would be lower, but to my mind the advantages are mainly around flexibility... e.g. How long it takes to create or upload an image file. How long it takes to set up a minimal infrastructure with several components to it on a single EC2 instance. Decoupling the operating system patch cycle from the app deployment image generation cycle. etc.
As an example i am running around 20 containerized servers on my Laptop in a 4GB VM which would typically be run on 20 distinct VMs on one or more hypervisors. It's not very fast but the density of servers you can put on your hardware is MUCH bigger.
That's actually exactly why I would use a VM..
The best I've managed was ninety seconds on my own hardware and three minutes (on average) in AWS.
I can't really think of a use case though where someone would need more capacity in sub 10 seconds. Maybe if you only intend to scale horizontally with a bunch of 500Mb instances and had little to no room to set an appropriate scaling threshold? What would be a couple examples? With the apps I've seen the past several years generally they have scaling thresholds at 'X' resource and 3 minutes is more than enough to provision extra capacity for their needs.
They're fine for a lot of things, of course. I use them all the time. But I use containers for other things.