Given the kind of "cloud"-backed startups most of HN are working on, I think the more practical measurement would be the overhead of a ring 0/3 separation in a VM, plus hypercalls, plus a ring 0/3 separation in the hypervisor (for paravirtualized syscalls); averaged against a ring 0/3 separation in a VM, plus SR-IOV virtualization (for HVM-backed syscalls.)

Yeah, this doesn't apply for context-switches that happen because of plain old pre-emption, but it does happen if the context-switch is because e.g. a network packet wants to arrive at another process in your VM than the one that's currently running.

I would imagine that there's a reason bare-metal IaaS providers have a business model. :)