You’re overthinking this. You don’t need an actual VM for services. Containers are fine. If you’re worried about security, go down the Katanor gvisor rabbithole, but you definitely don’t need an entire OS and VM running for simple services.
There’s no reason containers can’t be hardware accelerated. I’m confused by what that statement means.
Why would this person want KVM? They need anything a full VM provides, they’re just trying to run many services easily on the a single host.