Of course there are downsides (security-wise) to downgrading your secureboot policy to run Linux, but nothing that would be worse than any old x86 machine with no serious secureboot anyway, so that's hardly a problem for the kind of people who'd want to boot Linux.
Sure, if it works and doesn't end up being a user experience compromise down the line, that's fine.
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What made us seriously think about it is that M1 is new enough to have nested virtualisation, so that the thin hypervisor for this can still expose the full CPU feature set to the guest.
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Yeah, that's a big one. Though nested virt usually has a nontrivial perf cost, but it depends on the implementation. E.g. what is the cost of the extra pagetable level (which presumably at least can be using very large pages)?
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