Yup, that's definitely a new area. I guess you're using the hypercall API instead of pretending to talk to the raw HW?
In a way, the hypervisor has become "the" OS, while "an" OS is now just an application running within the hypervisor. Can we avoid the additional (hypervisor) layer? I think yes. But: 1) how, and [harder] 2) also while maintaining compatibility with existing applications? (Not existing OS's, just existing applications.)