1. Trust in the context of that sentence can be defined as trusting the BIOS, firmware, or spawning OS to not disable (either remove it or prevent it from being scheduled or receiving interrupts that it requires) as well as not tamper with (read,write or over write memory owned by the hypervisor).
2. Why are you brining correctness in to this. I never said that TXT had anything to do with correctness. So don't conflate the argument. All I said is that it allows you to get a reliable list of whats running on your computer.
3. On IOMMU. Are you sure you are correct? Last time I went over the kernel source (maybe 12 months ago) the kernel did not use IOMMU to prevent a DMA device from overwriting portions of kernel memory.
4. As it pertains to your last paragraph. TXT makes a big difference when you are talking about kernel level or firmware root kits and not application level exploits.