That is, confinement is sandboxing plus encapsulation. This definition is an abbreviated, but I think fair, version of the one given in 1973 by Lampson, who defined the term. Several researchers are developing wrapper technologies to confine applications. Neither of the mechanisms you mention provides confinement. Both provide a bad approximation to sand-boxing.
Wrappers look more promising, but are proving to have limitations.
Some have to do with the richness of the API and the difficulty of understanding which operations are actually dangerous. As far as I can tell, nobody can give an example of how they really help in real applications. Also, I don't think their implications for resource management have sunk in. This was a serious problem in the VMS version. Beyond that, however, these mechanisms fail to provide a bunch of the other things that are important in the e-commerce space, such as persistence, encapsulation or protection from compromise via the administrator account.