As someone who doesn't know, why would you want to run VMs inside of a docker container? Wouldn't this have tremendous overhead relative to just running the hypervisor?
If you use the -privileged flag, docker containers can access /dev/kvm and start low-overhead KVM instances.
It's advantageous for me, because I can say "hey check out this software" and they just have to run a single docker command, compared to installing Go, apt-getting a bunch of packages, fetching our repo, compiling, etc.
Because the software I'm attempting to demonstrate/distribute is specifically designed for running VMs. That is its sole purpose--sorta like OpenStack.