Yes, all projects in this sphere should communicate better.

An atomic distro is one in which the updates are swapped atomically at reboots. They also go by the name of immutable distros. Only the "system" partition is immutable.

Most popular I would say is SteamOS followed by the Fedora variants (Silverblue, Kinoite) and derivatives (Bazzite).

They are still limiting in daily use, rough around some edges.