For a traditional (read IBM) VM, you basically have fully compiled object code running directly on the metal. The security/isolation is provided via TLB entry security and privileged instruction trapping to the HV. While this can work well in a purely computational environment, it gets much more complex on something like PS3 which has to account for additional actors like the GPU.
Now the problem becomes, the HV really can only allow/disallow access to specific memory spaces and to higher protection levels of the processor. By default the application, esp in an environment like PS3, have lots of default access to things like NVRAM and disk. The fear is that someone figures out how to utilize the scripting interface of a game to access the disk access abilities of the base program and then put malicious code on the disk.
For a managed runtime, you are effectively trapping ALL operations and therefore can restrict
I have read somewhere that Sony's HV also layers on top of I/O accesses, and one SPU has been reserved for security specific use (where Local Memory is totally blocked off/unmapped ?). This is why I am interested to find out how they lay it out and partition the box.
EDIT: Nevermind, I think I have the answer now (at least the part I'm interested in).
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