Full fledged VMs are very different that slim Virtual Desktops which can be achiveved with only 1 install of the operating system.
Think of it as running a 5 monitor extended desktop setup in windows where you can put something different on each screen (like a unique wow window).
The benefit of a MultiSeat Desktop Virtualization approach is that then each of the 5 monitors (which can be virtual or consolidated) are then given their own desktop and keyboard and mouse to make them appear like fully fledged separate PCs (or VMs) but really it is just a single install of Windows with an extended desktop that is carved up into desktop containers... You could then just use 1-2 keyboards (with KM switches) and 2 monitors for 5 clients if you use the 4 quadrant setup for the other 4 virtual desktops.
Unless you have done it before it may be hard to visualize but likely many existing multi-boxer primary PCs can easily be adapted to do this for very little additional $ and relatively little complexity and not much overhead.
It isn't hiding anything and the advantage of this approach is that you are likely compliant with Blizzard's current stated ToS and not using input broadcasting software to broadcast keys to clients as you are using hardware. I think you are best served effectively unicasting via hardware instead of mulitcasting or broadcasting but regardless it is hardware based and at least for now blizzard has keyed on software broadcasting.
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