>So why put VM in microcode in the first place and limit us to only 60 LPARs.

Less overhead.
I've not seen a need for 'only 60 LPARs', yet.
But, I'm sure somebody out there has/will have it.

>Why not just give us VM "as is" and let us decide how many instances of z/OS 
>under z/VM we would like to run as well as the mix with z/LINUX,
AIX, etc?

Two reasons:
1. Complexity -- you need z/VM skills and z/OS skills. I've only known one 
sysprog with both at sufficient skill levels to be able to manage both 
effectively.
2. Why should IBM 'give' us anything? Last I heard they're still 
responsible/accountable to their shareholders.
-
Too busy driving to stop for gas!

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