I agree that if the advantages boil down to saving a hundred MB of RAM of two, and enabling additional compiler optimisations, it won't be compelling to that many folks.
Taken to the extreme though, we can start spinning up instances 'just in time' to deal with incoming requests. Doing this, you could run (and hopefully pay for) your instances for only a tiny fraction of the time your service is in a working/available state.
This has apparently already been demonstrated [0], but their demo has been broken for as long as I can remember. I presume it worked at one point. I don't know if any commercial Xen-based offerings can spin up an instance as quickly as their configuration did, but the idea is there.