Reading a bit the project site the only interesting (not to the general public) thing is the fault injection extension to qemu that uses a subset of VHDL* to define tests, even if it's not really clear what you can do with that. Definitely not a "new twist" in virtualization, just an extension to test/develop academic projects.

* http://www3.informatik.uni-erlangen.de/Research/fauhdlc/