It seems I am missing many things here, let me try out booting over NFS first
Check out HttpFSProbs for details
few worries :
PS: One way out can be that, root mounts iso over HTTP, then uses the local loop to mount that ISO.
I guess that, the ISO mounted by root is mounted using normal mount command, and hence should be readable by all.
and can also support other mount options if needed.
I have not done this experiment yet, need to confirm before proceeding on this path.
Done with this experiment, any user can view files if root remounts the iso file from httpfs with loop.
Done nothing useful, just some random reading