This is close to how OS X sandboxes apps installed via the App Store, and also how iOS works.
The downside is well known: a lot of apps need to access stuff outside of their "partition". When you create a new document from scratch in Word - how would you be able to save that document wherever you want? Or other apps that override system hotkeys, changes how windows behave, etc. You can't have permissions for everything – users won't be able to understand those. Another good example is an unarchiver apps for RAR files. You can send a file from your download-folder to it, but it won't be allowed to write the extracted files to the same folder.
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This is close to how OS X sandboxes apps installed via the App Store, and also how iOS works.
The downside is well known: a lot of apps need to access stuff outside of their "partition". When you create a new document from scratch in Word - how would you be able to save that document wherever you want? Or other apps that override system hotkeys, changes how windows behave, etc. You can't have permissions for everything – users won't be able to understand those. Another good example is an unarchiver apps for RAR files. You can send a file from your download-folder to it, but it won't be allowed to write the extracted files to the same folder.