We do in some cases, for both networking and storage. Since our devices are (mostly) VIRTIO (of pre-1.0 vintage), we're using it for OUTs into BAR0 (which again of course get their own VMEXIT and don't require emulation).

By and large we try to elide the exits entirely if we can, naturally, although in today's GCE production environment serialized request/response type workloads will see exits on every packet. Streaming workloads fare better, as we do make use of EVENT_IDX and aggressively trying to find more work before advancing the used.avail_idx field.