Despite claims to the contrary [PDF], VirtFS — the 9P-based virtio KVM/QEMU layer designed to pass through a host’s filesystem to the guest — is quite slow. I have yet to get it to perform at even 1/10 the speed of the virtual block device (VBD). That’s unfortunate, because in theory it should be significantly faster. At this rate, I suspect even NFS will be significantly faster.
Beyond that, it seems impossible to use VirtFS as the root filesystem in a VM, at least with Debian; initramfs-tools doesn’t know how to build an initrd in that situation, and the support is just not there.
It would make a great combination with btrfs or zfs, but unfortunately looks to be just not ready yet.