VirtKick isn't just a front-end for libvirt - we sacrifice flexibility for simplicity and lots of things will have to be configured the way we need it. We'll have a facility to import existing libvirt domains and networks to VirtKick to make them VK compatible, though.
We have no plans to drop libvirt now, but if users massively do bad things to our XMLs (doimains, networks), we'll probably have to.
FYI: Managing custom libvirt environments is better done with Archipel or WebVirtMgr, as they are simple libvirt frontends and impose no limits. (I contributed to both, btw) They aren't as sexy and easy to use, though. :)
Your post has made me want to dive back into KVM again too haha.
I've been using VMWare Workstaiton on my Debian box and while it works great it's just not great to manage without a web GUI.
I'm going to be installing http://archipelproject.org/index.php soon and see how that goes.
I know several compagny going back to Citrix XenServer or KVM due to the lack of vSphere client on Linux/OSX. IMO this is a big drawback of esxi, because i have to virtualize a windows only to manage my host. You should give a look at Archipel project. It's an "in-browser" manager, base on Libvirt and XMPP.
Ooooh man proxmox is so cool, and I almost chose it for my first real, on-premises (mah house) server (HP Proliant... it's an older model... but it checks out.)
After evaluating the limitations of its orchestration layer for handling containers; and a few other considerations surrounding ease of integration into my larger service environment, I decided to choose libvirt paired with archipel. At least for now.