Bottom-line is, the more complicated your setup gets, the more chances you get to fuck-up.
All that stuff about extra permissions, extra layers. Each thingie you add you need to configure. And you won't be 100%, not all the time. So, Xen is just another opportunity to get fucked. Instead of designing security, you add another plugin, wave your magic wand, and say `this is improved security' (take your deepest booming voice, if you want to be convincing). Security theater, once again.