A14/M1 and higher all have the hardware for virtualization, nothing is fused off for "devices". iOS and iPadOS don't ship Hypervisor.framework but the kernel still recognizes the entitlements for using it. Apple will never sign provisioning profiles with those entitlements, of course; but on at least one particular OS version with a jailbreak you could set up hardware virtualization. See https://worthdoingbadly.com/hv/

The main problem is purely just Apple not seeing a use case for virtualization on a touchscreen. They need to let go of at least one Strongly Held Belief.