Having used the ESXi hypervisor for years through their vSphere product I would agree with Chris that they have violated the license. They make changes to the Linux kernel for their hypervisor and only ship the resulting work as binaries. They violate the license by not also supplying their code alterations in source form.
It's pretty open and shut in my opinion. You cannot ship compiled code licensed under the GPLv2. A similar situation has arisen in the Minecraft community and the workaround created there by the community has been to have the GPLv2 source code downloaded locally and then compiled with non-GPLv2 code on the customer/client side. So instead of distributing the end product you instead distribute a build tool which downloads the open source components and the closed sourced components and builds the binary, thus bypassing the GPLv2's distribution clauses when mixing differently licensed code.
I expect if VMWare loses this case they'll just do something similar. Set up their own code repository that lists their closed source code then have a builder tool that downloads the GPLv2 open source code then compiles them together.