Docker does different things than VM's, but they work together perfectly. I run my all my Docker hosts on a VMWare infrastructure, which gives me best of both worlds. Yes - for some things, VMWare can't be beaten - but that's the nice thing: they are not mutually exclusive. Both are very handy tools in my toolbox, and neither are a one-stop solution. Docker sure adds complexity - but also a huge amount of flexibility. Once you understand the power of it all, and how to think with Docker (which isn't that obvious) - it's pretty damn good. Not that there are no downsides or things that could be improved, but nothing is perfect.

And then:

1) The problem is hugely exaggerated. It only applies to badly written software. And make sure we don't lose syslog? Seriously? just mount /dev/log into your container (it's a unix socket after all) and you're done.

2) Arguably faster? Try booting up 15 instances of app X. With docker, that's achieved in less than a second. On VMWare this has a huge memory and CPU overhead, not to mention boot-up times.

3) Try versioning VM's. Good luck. I have 100% reproducible, versioned images generated and tested in our CI system, that I can easily deploy in a VM on my laptop where I will have 100% the same setup as it will in test/qa/prod. To deploy the new version, start new instance, point load balancer/proxy/whatever to the new instance (happens automagically btw). Everything goes well? Stop old instance. Something goes wrong? Point proxy to old instance, and kill the badly-behaving. If everything went well: zero downtime. If you detect something goes wrong, it's nearly instant to switch back to the previous version. Also, testing this is a lot easier than with VM's. Sure you could do that with VM's too - but the overhead is massive, and takes a lot more time.

My ideal setup would be a hypervisor infrastructure with a bunch of VM's running only Docker applications.