People do something similar with e.g. Raspberry Pi machines with a microSD card; they make an overlayfs setup where the OS logs et. al. get written to memory and are only being synced to the main microSD card once an hour or so -- to avoid amortizing it too quickly.
So I'd imagine making something like that but with DwarFS below would be quite easy although it'd require you to set it up by hand. Still, once done it'll likely be a rock-solid setup for a long time.
