Most of the world's computing is now done "in the cloud," and that either means
VMs or
containers. There are very large and successful hosting enterprises which specialize in both.
In a sense,
"time-sharing has finally grown up."
We can now build computers with enormous capacity (and built-in support for virtualization), and we have finally hit upon robust strategies for "carving them up into byte-sized
(sorry ...) pieces."
Every operating system these days knows when it is running in a VM and can adapt itself accordingly. Today, basically, "everything works as expected."