It wasn't myopia. VMWare suffered from the same thing that other companies have gone through. They tried/are trying not to cannibalize their main source of revenue, and the world has moved on without them. CloudFoundry was their way of attempting to control the conversation, but it failed. They couldn't go from a lucrative private cloud revenue stream and then somehow convert it to a public cloud and expect to make t…
I literally don't know of any large companies moving away from virtualization to bare metal. Where is that information coming from? I know of some that are deploying some things back to "bare metal" if that's what you want to call containers, but even in those instances, it's a very, VERY small subset of the larger environment.
That said it is usually deployed beside a cloud like thing, and only used for select workloads.