even better with vms that are built on hvf directly like smolvm or microsandbox. much lighter, and more elastic.
lima uses vz, so it's built on top of hvf, seems perfectly fine and lightweight to me.
vz limits how much you can control the guest memory(doesnt expose a way to do free-page-reporting), has pretty terrible dis/virtiofs performance, and i've had issue with high host cpu usage. that said, iirc colima can switch to a krunkit backend so it can avoid most of these. ymmv but on benchmarks vz was 2-5x worse on a bunch of different ops