Things happen. We should be glad that these sort of security problems are being found and addressed; it would be naive to believe Xen or any other large codebase has zero security problems.
VM's should be regularly patched anyway, which usually requires a reboot now and then. If it were a physical server, the same would be true; just because things are in the "cloud" now doesn't mean they will have infinite uptime.
I understand that sometimes these services reboot and patch with little notice, but this should be built into any Terms Of Service constructed with your client(s); ie. "We will patch and reboot your service for critical vulnerabilities as quickly as possible, which in some circumstances may leave only short notice."
You can't migrate to a new kernel on Linode without a reboot anyway, so if you're proud of a 12+ month uptime, you're running a vulernable kernel.
> A security vuln, almost by definition, requires a shared resource. No sharing, no caring
You would only not care if your servers have zero access to the internet and are air-gaped from the rest of your network (even then it's been proven some vulnerabilities can be exploited to gain access).
I discussed it in detail previously on HN [0], but we give you the ability to live-migrate your workloads, even onto heterogeneous kernels. If that's something you really need, you can get it from Terminal today.
http://docs.vmd.citrix.com/XenServer/5.0.0/1.0/en_gb/install...