"flatten" is a simplification, what I mean is that the devicemapper thin provisioning module uses a data structure on disk that has a complexity that is independent of the snapshot depth. I did not mean that the Docker image itself is somehow flattened.
I don't think there will be any performance problems with deep layering of images, either on dm or ads.
That's some great news, thanks a lot for the heads up and the great work you guys are doing! I'm really looking forward to what Docker and its ecosystem is becoming - I think it's already quite obvious that it will revolutionize the way people think about linux application rollout - both from the user- as well as the application developer's perspective. It might even make 2014 the year of the linux desktop ;-).
I don't think there will be any performance problems with deep layering of images, either on dm or ads.