That's still really massive. It would only make sense in very high security environments.
Honestly running system services in VMs would be cheaper and just as good, or an OS like Qubes. VM hit is much smaller, less than 1% in some cases on newer hardware.
It makes sense in any environment you have two workloads sharing compute from two parties, public clouds.
The protection here is to ensure the vms are isolated. Without doing this there is the potential you can leak data via speculative execution across guests.
Overall, there is a continued challenge with CPU temperatures that requires much tighter tolerances both in the thermal solution. The torque specs need to be followed and verified that they were met correctly in manufacturing.