Unless you use a different VM for everything, you've just moved the problem from 'secure your workstation' to 'secure your VM'.
If you use both host & VM I think my point stands, the host may as well be another VM (or the VM another physical machine) it's not that it's virtual that's adding anything, it's the separation, which was my point.
Why yes, that's exactly the idea.
It still goes a long way to reduce fallout with minimal effort & discipline.
You’re right it’s not perfect security, VM still needs securing – but it’s a good ROI