Xen is proven, stable, and it works on a lot of hardware that KVM doesn't. It is used by companies like Linode.com and Slicehost with great success. Having the latest Dom0 kernel would be a boon to usage and latest kernel features/hw support.
KVM is great, especially for desktops, but ATM Xen is widely used on servers and shows no sign of reduction. Please merge!
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