z/VM solved the nested paging issue the late 80's. Usually by making the guest 
image so large that paging never became an issue.
There was also the "preferred guest" feature.


<snip>
>I would also think that there would be extra overhead with PRSM deciding which 
>LPAR gets resources and if it is the z/VM LPAR, then z/VM deciding which guest 
>gets the resources.   Seems like a duplication of effort.  Then, of course, 
>would JES2 tolerate this as well?
> 
Perhaps even worse, nested paging.  Might that be alleviated by either some use 
of V=R (is this possible?) so only the guests but not CP pages, or by defining 
an absurdly large virtual storage for the guests so only CP but not the guests 
page?
</snip>

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