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The advantages you gain with running a hypervisor on something like ZFS is immeasurable, for snapshotting, replication, snapshot backups and high availability. You don't have to quiese machines to back them up and you can do instant COW snapshots before upgrades.
KVM doesn't really have overhead, that's the kernel part. Maybe a bit of RAM, but with LXCs it's negligible.
I didn't think OP was going the ZFS route so it wouldn't matter on that point.
His Server 2 will be running on the red line imho so any overhead would have impact.