It takes a Village...
...to create virtualized systems: both a virtualizer compay like VMWare and the host/virtual OS like Red Hat. The fact that VMWare is more profitable than Red Hat is, I think, a side issue.
No one seems to complain that MS Office, or Oracle, or anything from Computer Associates is *MUCH* more costly than the OS, or that these companies (except for vertically integrated Microsoft) make far more revenue and profit than the host platforms do. That's the nature of the game: the vehicle is considered to be less valuable than the contents it transports.
Although RH may want to re-examine their pricing model in light of this revelation, I doubt that they will. As Wal*Mart demonstrates daily, low margins X large volume = big profits. As long as RH is holding or expanding market share and is making a reasonable profit, well, if Oracle and VMWare make BIG money off of their system, as long as they're the "truck" that's hauling them they're going to be just fine...
Nothing to do with the technology or the rest of the article. Just my 5p.