Earlier quoted context omitted.
Kvm (or any overwrite workload for that matter) is the worst possible workload for btrfs because of COW. We have ideas to address this but honestly it's not high on the list.
Shouldn't ZFS have similar problems with overwrite workloads?
ZFS does suffer from read-modify-write on partial record writes. The effect of that is apparent in the benchmarks. However, the benchmarks are being done on mechanical disks, which have low IOPS. The IOPS of a mechanical disk are roughly the same on a given sequence of IOs at different positions regardless of whether they are 4KB or 128KB in size, so it only has to pay a penalty once. If the record size were changed to 4KB, this penalty would disappear and ZFS performance should increase, provided that the VM internals are properly aligned.
Also, read-modify-write overhead reduces IOPS by at most 2 and bandwidth to the smaller of the link bandwidth and the IOPS times the record size. A CoW filesystem should be able to perform roughly at that level when it does read-modify-write on records/extents. Unless btrfs' internal extents are huge, there is an issue somewhere. Of course, having huge extents by default on which read-modify-write is done could also be considered a design issue.