Quite so.
I've used VMware for about two years on a variety of host hardware and OSes, running all manner of guest OSes, with nearly perfect results. I currently am running Mac hardware (MacBook) with Fusion, and gave an identical setup to my 14-yr old daughter who likewise is doing fine with it.
I don't know of any other competing product with that breadth of coverage, or high success rate. So I'm something of a VMware fanboy at the moment. No connection with Vmware itself, of course. Just a happy customer.
I tend to see XEN where the PERFORMANCE of the OS instance is the primary concern or where there are limited funds for the virtualization software. Mostly schools and medium sized business.
Interestingly, though I’m not sure of the impact, I see more hosting companies leaving VMware and migrating to Virtuozzo or XEN.