Those aren't private datacenters. Amazon/Azure/Rackspace/Google Cloud are public datacenters providing services for customers, so they will obviously be using virtualization. Personally I think public cloud is going to kill private cloud altogether, but that's an entirely different discussion.
But in the specific case of private datacenters, I believe, virtualization is dead, and many of my colleagues share the same opinion. Just because it's not common around the world doesn't mean that the change in trend and thoughts hasn't hit an inflection point. Virtualization has done an amazing job, and there's a reason why it has become so popular. But just like all other technologies, I think its going to be passed for something simpler that scales better.
I think you might be more accurate to say 'dead among highly innovative startups and tech giants'. You are probably totally correct long term on the dying, but it's going to be a few decades before Fortune 1000 and especially healthcare conglomerates move everything away from private cloud virtualization. Inflection points aside, that massive change takes a long time to be realized.
Your original comment makes it seem like it's all passé and old hat. It's going to be part of business in general for a long time and someone is going to have to work on it and develop it until it's gone.
