However, the packages are installed as root. As such I’m a bit wary of whether a user installing something could have the system run malware as root by installing a package.
I'm pretty sure the packages are built as unprivileged users in a sandbox, and you can also restrict what users can use certain Nix features.
The main security flaw with a multi-user Nix system is that everything you build ends up in a world-readable store.