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> will there be a future where all I/O paths in AWS EC2 access PCI passthrough

That's a business, not technology question. Possible today if I/O is priced for exclusivity to one workload, same as a dedicated server. Most AWS customers want shared workload (low) pricing.

> Debugability

In general, hypervisors provide more debug options than a single OS, since the host OS can introspect into the guest OS, even to record/replay guest OS execution, e.g. http://www.slideshare.net/mobile/xen_com_mgr/xentt-determini...

Real-time hypervisor scheduling is an ongoing research area, e.g. here is an automotive use case, http://blog.xen.org/index.php/2013/11/27/rt-xen-real-time-vi... & http://www.cse.wustl.edu/~lu/papers/emsoft11.pdf

> for very large sites with thousands of instances

Yes, containers work well for Google who doesn't need to worry about isolation. Most businesses are not Google nor are they running a real-time workload. With containers, SE Linux provides a necessary layer of defense, http://opensource.com/business/14/7/docker-security-selinux & http://blog.docker.com/2014/07/new-dockercon-video-docker-se...




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