@damiensturdy & caeden, I can imagine that latency could be an issue when it comes to virtualization but the software I have tried (such as graphics, video playback, office and DTP) works surprisingly well under virtualization so I just figure that maybe audio production software works inside a virtual machine.
So called Type 1 hypervisors have support for something that is called passthrough which means that some hardware can be assigned to communicate directly to the virtual machine without intervention of a virtual abstraction layer (that usually manifests itself as a ring buffer between the hypervisor and the VM) this is commonly used on network interface cards to ensure a good throughput and lower latency on virtual machines that require this.
For this to be possible the hypervisor has to be run "on the metal" and not as an application inside an OS (such as the VBox or the VMWare Workstation). Xen is one such example that is integrated with the operating system. The ESXi/vSphere is another, but it is its own operating system.
Moreover, the hardware needs to support either Intel VT-d or AMD-IOMMU which provides this passthrough feature.
Edit: Not only Xen is supporting PCI passthrough, we are also beginning to see this on KVM and VirtualBox. This is possible since one has managed to add type 1 like attributes on type 2 hypervisors and the distinction between the two of them is getting fuzzier. This is possible by patching come parts of the (type 2) hypervisor into the kernel. KVM can pass through up to 32 PCI units and it also supports multi-function passthrough. It currently does not support passthrough of graphics cards (or VGA passthrough, which is due to advanced BIOS features of a GPU in a computer) like Xen does, however. I don't know about VirtualBox but I expect it has similar capabilities, but only on Linux. VB currently has no support for this on other host platforms.