Of course. As Theo De Raadt once famously said you expect all those software engineers who can't write a single secure application even a small piece of code to turn around and write secure hypervisor is laughable if not fullish. Running multiple mission critical services on the single hypervisor creates a point of the single failure. Imagine a small lab running firewall, LDAP server, git repository, a web server, and few other tools like monitoring and central login server on a single hypervisor. What happens to a lab if the host goes down?
Now in reality virtualization has its uses and I am using it myself. Not all hypervisors are the same when it comes to security. Do you have virtualized hardware (Sun Microsystems had some nice servers)? OpenBSD runs very well on them. Who said that OpenBSD doesn't support virtualization?
Solaris Zones is an example of well done virtualization. You can use little imaginations to think of FreeBSD jails as the virtualization. They are pretty good. Jails is one of my favourite FreeBSD tools.
From "industry standard" type 1 hypervisors I like Xen but I will concur that I have never played with WMware product. KVM is level 1.5 hypervisor. Is about as secure as the rest the Linux (not very much if you ask me). VirtualBox is laughable but nothing makes for good laugh as Linux Dockers with whatever is the backend flavour of the day (I hear they don't use Linux containers any more). It is very easy to escalate privileges in Linux container and get the root access to the host machine.
Note that FreeBSD has now Bhyve and Xen Dom0 besides Jails. The choice of FreeBSD hypervisor might depend on your familiarity with particular technology (Xen has been long time around and people are familiar with it) or the choice of your hosts (OpenBSD runs poorly as Xen DomU).