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I thought this was why things like the big end ThinkPad W-series exists?

I still run 3-4 VMs at the same time on my ancient X201 on Hyper-V.

what are the advantages of this over just having a machine with many VMs?
If you are messing with virtualization setups, hypervisors and low level os/kernel things you often can't (or at least don't want to for speed, stability etc) be in a virtualized environment as your base layer.
The configuration outside of VMs (e.g. routing) is slightly different. Apart from the obvious fact that - depending on the the hardware used - you can get more computing power than from one machine.