In addition to already mentioned reasons to use XEN, it also takes advantage of IOMMU hardware and can run, for example, a guest OS against the real networking hardware. Besides performance improvements it allows to isolate a bug in a network driver or even in TCP implementation from the rest of the system.
An Introduction to Full Virtualization With Xen (Linux.com)
Posted Oct 24, 2012 15:11 UTC (Wed) by aliguori (subscriber, #30636)
[Link]
KVM also has IOMMU support FWIW.
In fact, it was recently completely rewritten as a generalized Linux feature (VFIO) that could also be used to write userspace device drivers protected by an IOMMU.