This argument is only similar if the condom is known to have huge design flaws
VMs have tons of well documented issues. If you want a smaller attack surface, try OS virtualization technologies (zones/jails)
This makes no sense. VMs are by far the most secure form of isolation. No one is going to get infected with malware that escapes VMs - it is far too valuable.
How can you honestly think VMs are the most secure form of isolation?