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#21
I have a wintousb install of 1703 on a flash drive with all the updates installed - works fine.
Obviously winpe can only run truly portable apps.
I doubt wintousb will ever stop getting supported in near future. It now can create uefi installs on a standard removeable flash drive which annoyingly the official Windows To Go will not do despite it now being possible as you can read multiple partitions on drives without the "fixed drive" bit enabled.
I do not see that you would be allowed to run linux drives with windows in a vm any more than windows on a usb on a corporate network. Most big companies i deal with lock down usb drives so you cannot boot from them - many will not even let you read from them.
You are comparing oranges and apples when you say running vm from usb3 would be faster than running a host from a slow spinner. Running a host OS from usb3 will be faster than running a vm from usb3, and running vm from a slow spinner will be slower than running host from a slow spinner.
However, you are totally correct about different ideas. But I still subscribe to the KISS principle where possible.