The VMs, in addition to dealing with the normal VM overhead we all already understand, would have much lower (like an order of magnitude) bandwidth to main memory and a similarly smaller share of L3 cache, in both cases because the resources are shared across all 32 devices.

So the answer to the question depends heavily on how cache-resident the problem you are throwing at them is. They'd do great mining bitcoin and be a total disaster as memcached hosts. More typical workloads will be somewhere in the middle.