I could come up with scenarios where a VM would run faster than a physical box. None that would ever come up in our environment. Which is ESX. About 200 VM's at this point spread out across 4 IBM BladeServer Chassis. Fully populated so 14 Blades a piece. The SQL farm at the data center the servers I support are Dell 6650' Quad Xeon's with 8 GB RAM. Hundreds of heavily utilized databases spread across a 4 node Active/Active Windows 2003 cluster. VM's are not even a consideration for our production environment where SQL is concerned. Activity on our SQL boxes would facilitate one VM on one blade running ESX. Not cost effective. Too many servers that could run as a multiple VM blade. We actually did have a couple of blades running Windows 2004 enterprise running a two node active/active cluster. Eventually it was just pitifully obvious the db's needed to be moved to the farm. ESX and a single VM on those blades would run worse than the windows installations. Only VM's with SQL in my world are Sql 2005 Test and a few SQL dev servers but once we go live with 2005, in the distant future, they will definitely be on physical boxes. Apples for Apples a VM is not going to compete with a physical box. Just the way it is.
Yeah, if you have a Dual P3 with 2GB of memory running SQL and you upgrade to a box with significantly better specs running ESX and the only VM on that server is SQL, assuming it's banged pretty good, then sure, it will run faster than the legacy server. If it isn't hit hard then maybe even running a webserver or something in VM on that same esx instance would work as well. Maybe even a couple NLB servers.
Anyway, if I was a dick it wasn't intentional and I apologize if it came off that way. Two years in the VMWare universe. Many classes and an assload of experience. Our blades/ESX/VM's are not my sole responsibility by an means but when something goes wrong it's usually me that gets the call. VM's are wonderful things. I love virtualization. But there are some applications that are not good candidates. Enterprise Production SQL servers is one of those poor candidates. So I applaud your use of current and future technology, virtualization, and kudos for good performance on your SQL VM(s). Doesn't sway my opinion about what should or shouldn't be put on a VM. Ask your VMWare rep out SQL on VM's. If he's honest, or off the record, he/she'll tell you it's not a particularly good idea.
Having said all that, I will repeat that I acknoledge and accept a scenario where it could be a viable solution to run ESX and SQL on a VM. Just none that I would be working on.