Virtualization (or: it's about time)
Virtualization is everywhere these days (duh.) Because of increase in hardware performance, security requirements and the need to run several OS on one system, virtualization is now mainstream enough to be offered on desktop operating systems for the masses to use (Linux, OSX, Windows.) It is so far a x86 game only, although hypervisors for other architectures (like XScale) are in the work.
Hardware vendors are adding a lower level of instructions to help writing hypervisors that will control the VM supporting operating systems running at their current priviledge level. This pushes the security one level down while offering the devastating ability to compromise the software that manages the execution of all operating systems on the platform. This thread could be circumvented by the use of the TPM/PKI to ensure that the hypervisor isn't being tempered with (take a look at this diagram)
Some articles I should have read a long time ago.
There's certainly hope that hardware will address some of the existing performance degradations brought by virtualization. Some applications that could greatly benefit from virtualization can't suffer the I/O performance degradation that existing virtualization technology fails to entirely alleviate.