Thanks for the trip down the memory lane. While I didn't use any mainframes, I know the partitioning on these beasts existed when I was running VMWare on my desktop around 2000.
However, I remarked that the quote is dated before hardware virtualization, namely VT-x/AMD-V, VT-d, etc., hence hardware segmentation of processors and I/O devices were not possible on that era's x86 hardware.
I have no qualms against jails and/or BSD. I'm not a flamewar person. As I said, this was a quote from our System/BSD guy, nothing else.
Maybe the hardware was saturated, maybe that kernel had a regression, maybe without hardware virtualization/offloading there was some kind of overhead in these days, I don't know.
All in all, they are nice technologies, and I like/support them all.