"x86 virtualization is about basically placing another nearly full kernel, full of new bugs, on top of a nasty x86 architecture which barely has correct page protection. Then running your operating system on the other side of this brand new pile of shit.
You are absolutely deluded, if not stupid, if you think that a worldwide collection of software engineers who can't write operating systems or applications without security holes, can then turn around and suddenly write virtualization layers without security holes."
Unless the physicists find some way to breathe new life into Moore's law, I suspect we will gradually move back to the mainframe approach of implementing more and more of the low-level stuff directly in hardware.