No, that's wrong. There are actually a number of ways VM hosts can and do expose host entropy to guests. On x86, for example, they can allow the guest to use RDRAND/RDSEED. On anything with PCI devices, there's VirtIORNG: https://wiki.qemu.org/Features/VirtIORNG . VM hypervisors absolutely implement this service, or similar guest services, and hosting providers enable them.
Sure. But the issue here is when these features are not used correcly. For non-vms, linux uses cpu jitter as a fallback if the random device is missing or misconfigured. But for vms, that fallback doesn't work as well.
