As one of the SWAPGEN authors, I've watched this discussion. I'd note that Barton's original statement stands, in the context in which he said it: VDISK has always provided better *performance* in every observed case. The concerns about "using up real memory" have never been supported by the data.
The pathological cases of "This guest runs away, real Swap DASD gives me a chance to control it" are perfectly valid, but don't contradict the statement that VDISK is better *for performance*; rather, they support it. ...phsiii