Lately IBM passed around a paper aimed at Amazon that showed how badly paravirtual machines behave compared to bare metal.
What they didn't note is that newer Intel chips have serious support for hardware virtualization, and that with hardware virtualizaton you get near bare metal performance. And they didn't note that the new instance types on AWS support hardware virtualization.
Paravirtualization was an important technology for a while because it was the fastest sort of virtualization ten years ago, but now it is the slowest.