You're on crack if you think Vmware ESX 3.x and its feature set would suffice in the enterprise today.
There have been so many improvements in 4, and 5 to make the product scale'able, and handle larger and larger workloads, etc. Not to mention compatibility with newer apps and OS's. I guess for an SMB, a stripped down "entry-level," hypervisor would be an interesting sell... But then who wants to maintain two code bases?
Add to that, Flash (which was established back then) and HTML5 which was ONLY ratified in what the last two years?... Who can move that fast to build a new UI, change the entire ship's course with that? While also building in new features.
SDN, SDDC, and automation are rather large initiatives in many orgs, small, medium and uber large. NSX, VSAN, VCAC are available to follow roadmaps of the customers, as well as the market (for their own greedy valuations) Not sure if you ever worked for a manufacturer.... But large customers drive roadmaps. If a UPS, or AMEX wants X feature, and will commit to buying 10's of millions of dollars of VMware licenses over Y amount of years, Damn straight VMware will find a way to put it in. I'm pretty sure those companies are not looking to implement Windows 2000/2k3 with less than 8GB of RAM on smaller than 2TB workloads.
I don't disagree with their lack of cloud strategy. But they keep saying it's coming... With EMC still controlling some aspects, you really think that will change anytime soon?