KVM & VMWare are not containerization, they're full virtualization.
There are a lot of benefits to containers and they don't have to be insecure. More efficient resource utilization and orders of magnitude faster allocation and launching to name two.
Google runs a significant portion of its internal operations in a container infrastructure and has for quite a while.[1]
They're perfectly capable of deployment into production environments.
I won't comment on docker as I haven't spent the time to fully grok all its warts.