It is not a question of "if" but "when".
In house we have been moving to virtualization for storage, servers, desktops, and services.
We all want to be "green" these days, but Finance demands we cut expenses, users demand greater flexibility, development and support demands access to a wide varity of test servers, your team demands flex working conditions, and the list just goes on, and the only way to accomplish all this is via virtualization.
From what I've seen most clients are either doing, testing, or evaluating it. Of course there are always those dinosaurs that will stick their nose up at it, but then nature has a way of taking care of dinosaurs.
The kicker is the WOW! factor that will happen after the first phase of this is done on an industry level. Once that is done then the visionaries will see new potentials and from that will be a whole new generation of WOW! products.
I dislike systems that virtualize storage in the form of a loop mounted filesystem of any type.
double filesystem overhead is taxing and adds up quickly. I would avoid using ESXi or Xen for a shared storage VPS for this reason.
I think its awesome!