Azul Systems has been marketing a different solution to this same problem in the Zing VMs for some time now. I believe their solution is based on adding extra APIs to the underlying kernel etc. so the JVM's heap isn't so opaque to the OS/hypervisor.
The VMWare solution sounds like a simpler, pragmatic "hack" to solve the problem. It would be interesting to hear from someone that has used both technologies to see how they compare in practice.