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Big companies use virtualization for running vertical apps on operating systems that may no longer be supported, ie. OS/2. OS/2 can't run well (if at all) on new hardware, but throw it in a virtual machine and it can run wonderfully. There's also consolidation with security, such as taking the tasks of several separate physical servers and throwing them all on one server with virtual machines to separate them. I had a Windows Server 2003-level forest and domain set up in virtual machines on my laptop, and it was awesome.
Virtualization was *never* meant to be a gaming thing. Don't expect to run your leet Linux distro of the month but still be able to fire up Crysis in a VM. Not gonna happen.
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-SSZ
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