Thankfully, better designs such as seL4's VMM do exist, although it might need a little more work [1] until usable for the purpose.
I've been using KVM/Xen/VMware for some time and always enjoyed it. And since Amazon and Google especially are going all in on KVM I'm surprised to hear the Xen is a better choice.
KVM is, like VMware, a Type 2 hypervisor. [1]
Xen is a proper Type 1 hypervisor.
[1] https://microkerneldude.wordpress.com/2010/10/14/much-ado-ab...