Yes, at some point I got a report about Xen 3.0 (If I remember correctly) fixing the issue, but I never see in the real world things improving much AFAIK. Here is a table that shows fork times with different environments, just to show how bad the thing is:
Linux beefy VM on VMware 6.0GB: 12.8 milliseconds per GB.
Linux running on physical machine (Unknown HW): 13.1 milliseconds per GB.
Linux running on physical machine (Xeon @ 2.27Ghz): 9 milliseconds per GB.
Linux VM on 6sync (KVM): 23.3 millisecond per GB.
Linux VM on EC2 (Xen): 239.3 milliseconds per GB.
Linux VM on Linode (Xen): 424 milliseconds per GB.
Around 30 times slower than bare metal, and I'm talking about old physical servers with slow memory compared to today's.