Thats partly correct. Most of what you say is true for a xen dom0.
But I'm talking about running SME on xenserver, which was a commercial product of Citrix. They include a driver pack for linux and Windows based vms. As example for Windows vms, it includes a scsi card driver, and also a nic driver. These match the hardware xenserver adds to the vm, and allows near native speeds because there's no emulation.
I say you're partly correct, because if you google around you'll find free drivers for Windows domUs. Also, xen-tools is not the same as xe-tools from Citrix.
And, I said xenserver 'was' a commercial product because they have now given it away, as of a couple of days ago. Turns out the free version was the same as the pay-for Enterprise version, but with limits. For example, it now allows a host with 64 cpu sockets.
You just d/l the free license and install it on the free version to have their enterprise product. I run it on dual and triple-core AMD cpus. Guests have always run much faster for me on xenserver than on xen 3.1 running on centos 5.2.
Xen 3.3 seems faster, but it's still not as fast. Not to mention the xenserver GUI running on my Win XP workstation, the quality of which is quite remarkable. Allows me to add/remove storage, backup guests to a file to any storage on the network, create new vms, etc.
I can't compare it to VMware because their ESXi never likes my cheap hardware - I can never get it to install. I think they designed it to run only on expensive iron like HP, and maybe Dell servers.
I seem to have said more than I intended - guess I'll shut up now...