I can't help feel that we're missing the elephant in the room for this 
topic. Windows.
Suppose you have 50 (100? more?) windows servers, some serving up 
multiple variations of a database, or multiple variations of an embedded 
gadget that hosts its own web server, or multiple versions of some other 
thing that runs on the same port. Putting these into Virtualization 
saves a lot of power for these sorts of companies as it reduces <n> 
servers to 1 for a platform that doesn't have a history of jails, or 
chroot, or things like that.

 From the Linux side, it can also be easier to audit a server that hosts 
one or two dedicated things on an OS vs. a server containing a grab bag 
of things needing conflicting version of this library or that library, 
or some dependency that is conflicting, or whatever.

Virtualization has its place. It's neither panacea nor useless.

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