Is there a consensus on how to run Steam and games isolated from the main system? I've seen Flatpak mentioned in some Reddit post but I'm not sure how good the separation is. Everything about Flatpak sounds like an early work in progress, but I can be convinced otherwise.
I don't trust Steam or the closed source games at all. Currently I've got a second disk with a separate system for gaming, but I very rarely have the motivation to reboot. I want to game more (and spend less time on social media) but compromising my main OS is out of the question. Stuff in the home directory should be isolated from the games. Ideally no network access too, but Steam will not work in that case.
If someone has seen a ready made guide I'd be happy to read it. Any tips would be nice too.
Flatpak's security and sandbox has gotten much better in recent years. I've been using Steam via Flatpak for a while now and haven't run into any issues yet, other than not being able to make desktop shortcuts of my games.
I use Flatseal (another Flatpak application) to further restrict my Flatpak's permissions) The default Flatpak permissions for Steam aren't bad IMO (at least when compared to other Flatpaks) but you can tweak it to your liking using Flatseal.
If you want to take it a step further, I would recommend using Goldberg's Steam Emulator, which is FOSS, and it will allow you to bypass Steamworks DRM (which is Valve's very weak DRM) for games which solely use Steamworks DRM.
I find that the overwhelming majority of my games just use the Steamworks DRM if any, but YMMV. Using Goldberg's Steam Emulator is also a good way of preserving your library if, in the unfortunate case, Valve decides to remove a title from your library for whatever stupid licensing reason they come up with.
After freeing your games using Goldberg's Steam Emulator you then could use the Flatpak of Lutris and disable network access for Lutris/further restrict permissions it has to the rest of your system using Flatseal.
Amazing, this way I could restrict network access with normal tools like firejail instead of fiddling with Flatpak. I've never heard of this tool before: https://mr_goldberg.gitlab.io/goldberg_emulator/