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Managing Virtualization is a challenge
The management products out there ARE needed. I work in one of the smallest companies I've ever worked in (5k desktops, a few hundred servers) that has switched HEAVILY to virtualization (thankfully).
Keeping up with the Host management is handled via traditional methods, tools and processes. The Guest (VM) management is a different process, because of the features of a vm, how the vm is stored (on the SAN), how it's backed up (do you backup WITHIN the VM like traditional backup, or merely copy the VM file?), etc. It introduces all sorts of "wrinkles".
And then there's disaster recovery...how do you replicate these VM's to somewhere like SunGard?