I've achieved near-native performance for intensive activities like gaming, music and visual production. Hardware acceleration is kind of a mess but using tricks like GPU passthrough for multiple cards, dedicated audio cards and and block device passthrough, I can achieve great latency and performance.
One benefit of this is that my desktop acts as a mainframe, and streaming machines to thin clients is easy.
My model for a long time has been not to trust anything I run, and this allows me to keep both my own and my client's work reasonably safe from a drive-by NPM install or something of that caliber.
Now that I also use a Apple Silicon MacBook as a daily driver, I very much miss the comfort of a fully virtualized system. I do stream in virtual machines from my mainframe. But the way Tahoe is shaping up, I might soon put Asahi on this machine and go back to a fully virtualized system.
I think this is the ideal way to do things, however, it will need to operate mostly transparently to an end user or they will quickly get security fatigue; the sacrifices involved today are not for those who lack patience.
Also, relevant XKCDs:
https://www.explainxkcd.com/wiki/index.php/2044:_Sandboxing_...