We have been using Delphi in a VMWare Workstation for over a decade. We have a team of about 12 people. Some remote workers use Delphi in a Citrix instance run on our XenDesktop environment.
A decade ago, there were lots of problems. Windows activation issues. Delphi activation issues. etc. But we stuck with it because it ensured all team members have an identical instance set up appropriately. Also, if one computer crapped out, we were up and running within 20 minutes.
These days, its a no brainer. We dont even have Delphi installed directly on the host machines any longer, so I cannot compare to a host installation on the same machine, but running in the VM is more than acceptable.
All benchmarks we have run (i.e. running same executable inside vm and on real machine) are within 95% speed of each other. For profiling, we dont even both copying to the host machine any longer, unless we are profiling heavy multi-threaded work.
What does make a big difference is to put the VM on an SSD. Compile times are much faster.
Our App is about 2 million LOC, but we ensure that our individual units are not too large. Usually a few K LOC, up to a max of 20K LOC or so.
CTRL+END is pretty instant for me, even in the largest units.
Maybe we would get 1/2 sec better on some mouse actions if we installed it on the desktop, who knows, but I personally do not notice any speed impediment due the to the VM. My typing speed is usually the bottleneck, not the IDE (and I type pretty fast).