Ah, I see, you're talking about Intel ME/AMD PSP? That's unfortunate and I'm obviously not happy with it, but so far there seems to be no evidence of it being abused against normal users.
It's a little funny that the two interests of adtech are colliding a bit here: They want maximum control and data collection, but implementing control in a palatable way (like you describe) would limit their data collection abilities.
My answer to your question: No, I don't like it at all, even if I fully trust the hypervisor. It will reduce the barrier for implementing all kinds of anti-user technologies. If that were possible, it will quickly be required to interact with everything, and your arbitrary guest will soon be pretty useless, just like the "integrity" bullshit on Android. Yeah you can boot your rooted AOSP, but good luck interacting with banks, government services (often required by law!!), etc. That's still a net minus compared to the status quo.
> The external party is reflecting the average consumer's demand for there not being cheaters in the game they are playing.
Pretty sure we already have enough technology to fully automate many games with robotics. If there is a will, there is a way. As with everything else on the internet, everyone you don't know will be considered untrusted by default. Not the happiest outcome, but I prefer it to losing general purpose computing.