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Simple as that eh? You know, because *everyone* runs Linux :-P

Every user of Linux kernel runs Linux. And the question was about future of both KVM and Xen in Linux kernel.

Industry standard is Xen, that's the fact. It works with Linux, OpenSolaris, BSDs are porting it and Microsoft worked with XenSource somehow. So we can presume that Viridian will be Xen-compatibile.
Xen is very much "enterprise" like projects on http://thedailywtf.com. Yes, it works, but it code quality is horrible -- every kernel hacker reviewing Xen source code has run away.

KVM is clean and simple. It has almost all features of Xen (SMP guests, live migration etc.) and can run Xen guests. So Xen seem redundant on Linux.

And guess what? KVM is to be ported to FreeBSD: http://code.google.com/soc/2007/freebsd/appinfo.html?csaid=FACC0F1A...
I heard rumours about possibility of porting KVM to OpenSolaris. So we would have KVM as defacto standard.
Porting isn't so huge undertaking as porting Xen was. KVM is clean and looks much more like device driver. That's why it got merged into Linux kernel so fast -- it's not invasive.

WOOW ! This KVM-Xen is wonderful project !

Anybody has any idea where the project's homepage located? (Google returned irrelevant answers)

The Linux kernel virtualization is developing at excellent pace - I would say that year 2007 is the year of Linux kernel virtualization !

The Linux kernel develops separate components separately, which results in a beautyful virtualization infrastructuire-in-kernel, rather than a Xen mess.

KVM only works on CPUs with hardware virtualisation support. Xen works on any x86 CPU since the PPro. For that reason alone, KVM cannot supplant Xen. And until the management tools for KVM catch up to those for Xen, I don't see it "killing" Xen.