The abstraction manifest more on the language level. No memory management, simplified synchronization primitives, no need of compilation.

Not sure virtual machine are fundamentally different. In the end if you have 3 virtual or 3 physical machine the most important difference is how fast you can change their configuration. They will still have all the other concepts (network, storage, etc.). The automation that comes with VM-s is better than it was for physical (probably), but then automation for everything got better (not only for machines).