Earlier quoted context omitted.
Not only do people do this, it's generally how VPS providers work. Most machines barely use the CPU most of the time (web servers etc.) so reserving a full CPU core for a VPS is horribly inefficient. It doesn't matter anyway, because SMT isn't relevant for this particular bug. With SMT allowing twice the cores on a CPU for most workloads, disabling it would double the cost for most providers! There are VPS providers…
SMT is relevant in the VM case of this bug because it determines whether this bug is restricted to data outside the VM or not. Providers usually won't disable SMT completely, they'd run a scheduler which only allows 1 VM to use both SMT threads of a core. Ultra cheap VPS providers may still find that not worth the pennies though as if you sell a majority of single core VPS then the majority of your SMT threads are st…
Registers are unloaded and reloaded when different processes / threads are scheduled within a running VM too. That should protect the register contents, but because of this issue, it doesn't, so I don't see why it would if it's a hypervisor switching VMs instead of an OS switching processes. If you're running a vulnerable processor on a vulnerable microcode, it seems like you can potentially read things put into the vulnerable registers by anything else running on the same physical core, regardless of context.