I haven't tested this but I was just reading up on libvirt lifecycle
control.  Have you tried changing the on_poweroff setting to destroy
since it seems to default to preserve?

For more information:

http://libvirt.org/formatdomain.html#elementsLifecycle

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poweroff in the guest doesn't stop the kvm process on the host
https://bugs.launchpad.net/bugs/193451
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