Yeah, I've always wondered too that we're running servers with the full OS stack (sometimes horrific beast like Solaris) to operate a single simple program. What a waste. Xen is looking more interesting every day, with stuff like this and HaLVM.
Because there is more to running an application than just running the application. You need disks, network configuration, somewhere to send your log messages, etc., etc.
By the time you've implemented all that, congratulations, you have an OS.
In the case of this Redis example, they dispensed with all of that and used the host OS's TCP stack via Xen. If you were running on the bare metal, you wouldn't even have that.