Bruce, this is an interesting and valid point, but it's also a bit like the discussion of 3D rendering that happened in the mid 90s. Sure, 3D graphics cards were rare and expensive at first, and that meant there was a place for software rendering.
Nowadays though no serious 3D program (ie. no game!) comes with a software renderer, because the 3D hardware is everywhere, on motherboards, in open handhelds like the GP2x-Wiz, and even in experimental boards like the ARM-based Beagleboard.
Hardware virt support is in just about every new x86-64 processor that comes out. A few 32 bit netbooks don't have it right now, but it'll come to those too.
Also don't overlook the fact that KVM does have software
emulation. OK, it's slow, it's in userspace, and it relies on qemu. Nevertheless, just running
qemu-kvm will transparently fall back to software
emulation if the hardware doesn't support virtualization.
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