startrail wrote:
Is there a better way to create "virtual" directories?
Typically, you'd simply already have these directories present (but empty) on the read-only filesystem, so that they can be used as mount points for writable filesystems later.
startrail wrote:
How does Live Ubuntu ISO or any other live distro handle this? Assuming the same CD-ROM constraints.
A Linux live CD will typically use an
overlay, putting an in-memory writable filesystem atop read-only data from a squashfs image on the CD.
Further, a Linux live CD may support an additional overlay system called
casper, which allows changes to be written to (and read back from) a persistent storage device like a USB stick.