I don't see anything wrong with this. The PC (including servers) world went down a path of high physical integration- the bus, the CPU, the memory, and the peripherals are all one unit that couldn't really be carved up.
Now people are realizing they can build a server from a bunch of parts connected by fast fabric, and you can pull/place items in the fabric and use them immediately, or take them apart. The MULTICS machine was actually carved into two pieces live, every night, to run two instances, then re-merged in the morning(!)
Hardware virtualization - and component aggregation - were always great ideas, and now the technology exists to deploy it at the middle-tier commodity server level.