I've posted over the past several months about the great advances we've made in the TFS installation experience.  As we start to wrap up work on TFS 2010, we're starting to think about the future (beyond 2010 :)).  One of the things that has interested me for a while is the notion of virtual appliances.  I've been wondering how many people would like it or not like it if we shipped TFS as a virtual appliance.  The advantage of a virtual appliance is that there is almost no setup to do at all.  We would do all of the setup - prereqs, etc onto a virtual machine image and all you would do is enter product keys, machine name, etc (stuff that makes the machine "yours).  In principle, setup would be faster, more reliable and even easier.

Perhaps the biggest downsides are that 1) you'd be required to run it in a virtual environment and 2) your initial configuration options would be limited (because we'd bake them in).

So I'm curious.  Who has experience with virtual appliances?  What do you think?  Do you think this is something we should consider for TFS in the future?

Brian