Seriously.
I really don't understand what seems so hard about just plugging everything in with longer cables...
I don't understand why you are even bringing virtualization into the mix. You don't need a separate session do you? You don't need someone to be in the other room using the computer at the same time as you, do you? You aren't looking to control more than that one machine from that single set of keyboard/mouse/monitor, are you?
If not, then you are looking at solutions for problems you don't have.
Because I have a nice big house and don't want to run 50-60 ft VGA/DVI or drill holes in walls. Plus the way my house is setup I would have to go through like 3 walls to get to my living room. And then have cable laying here and there. Or I would have to run it through the attic and have a cable to going up into my 16 ft ceilings in my living room.