Well, that's what the thinking was, which makes this so interesting. I think the implication from the video is that this is not Mac OS X Server, but Client. Are you suggesting that Citrix is doing this so people can run Mac OS X Server on their MacBook (again, see they keynote video).
Here's also another comment by a live-blogger of the event (doesn't confirm anything, but gives some context)
http://www.brianmadden.com/blogs/br...2-quot-cloud-amp-datacenter-quot-keynote.aspx
Look, I worked for VMware during the time Fusion was developed (sorry, I'm not trying to say I'm some super knowledgeable insider, but I saw what I saw.) Trust me, there is no technical limitation to running OS X Client as a hosted OS in either type of hypervisor, it is a decision made by Apple to not allow it which has been honored by the developers. If you want to run OS X as a client there are hacked versions that work quite well, it's just not something Apple wants to see right now and there really isn't any good reason for VMware or Parallels to argue with them. Type 1 hypervisors don't offer native performance for GUI workloads, and they never will. The whole point of that type of virtualization is to increase utilization across as many VM's as possible, for workstations there is one user who wants the maximum graphics performance possible.
Let's face it, that's where the bottlenecks are at this point in time, CPU's have become multi-core monsters and are not all that big of an issue on modern hardware. A bare metal hypervisor would have to create a virtualization layer for all the different video hardware (an easier task on Mac's than PC's, but really unlikely to pay of performance wise) whereas using Apples graphics API's and OpenGL for the most part abstracts you from having to virtualize hardware that you don't have the spec's to anyway. That's why all the bare metal hypervisors emulate standard VGA, and two or three different NIC's. When you go bare metal you have to basically write all of the glue that handles interaction between the host OS and the Hypervisor. It's not just passing instructions, since you have to properly deal with what instructions you are passing and saving state.
My point is that bare metal hypervisors do offer better efficiency and performance when you are running lots of non-graphical VM's. A server in other words. When you are trying to run a workstation that has some server VM's or multiple GUI based VM's host based virtualization is a superior solution. I'm not saying it will always be so, graphics cards are becoming far more abstracted into generic processing, and they may see the advantage of creating hardware based extensions similar to AMD and Intel to help support virtualization of their tasks, but that isn't here today, and it's unlikely to be something you will see soon.
Most people in an interactive shell just want the thing that they are doing to be fast, if they switch to the Windows VM, they want it to have crazy framerate. They don't want to lose 5fps there just to make the DVD they are ripping in OS X take 15 seconds less time. If bootcamp could instantly switch between frozen OS's I'd bet 90% of Parallels and Fusion users would never have bothered with it. A type 1 hypervisor just isn't suited for that kind of user, and Apple knows it. I really don't blame them since the only thing that virtualizing OS X client could possibly do is make it slower and less stable, bare metal or not.