Citation on this? As far as I know (am writing a phd thesis on development++), there's nothing like "virus activation". Viral elements (mostly transposons) are big evolutionary players but are usually actively repressed by DNA methylation (in eucaryots).
> Which might be why many cancers, seem, to me, to look like distinct entities, like the tissue has suddenly switched to a different functional mode.
I don't 100% understand your comments about viruses here, but related to this, we don't need to imagine some virus orchestrating such a thing (besides, as far as I know they are way too simple to drive complex eucaryot gene regulation), but rather gene regulatory networks which if they get unbalanced can lead to significant changes in morphology.
<edit> some spelling