I remember asking a very similar question not so long ago........here's my understanding.
People are right for a SQL VM you need 4 cores and a good 8Gb of RAM - SQL is a pig, it will eat up as much memory as you allow it - it's apparently designed to do just that for faster responses. Now if you're SQl kiddie you could probably tweak it to perform just right for it's maximum load........BUT that is not the most important thing when it comes to a VM SQL.
Remember with a SAN you can create various LUNs - LUN0 might be a 2 disk RAID 1 for the various server OSes, LUN1 could be RAID 5 for those servers additional drives - but no matter how you set it up, it's about IOPS.
For instance if you have a SQL that is heavily used, on a VM that is sat on a RAID 1 2 disk LUN you probably find that it will suffer lengthy disk queues - this is not a limitation of the RAID level as such but a limitation of the physical drive itself , it's own buffers.
The tendancy now days is to go for BIG drives on a SAN - 2 1 TB drives in RAID 1 for a SQL would give you loads of room - but only 2 buffers, one in each drive. The smart money would be to have several drives in maybe a RAID 10 that would share the requests seriously reducing the IOPS increasing perfomance. In short the more spindles the better.
This or course is the great thing about VM - if it turns out it's not performing as you would like, create another LUN with more spindles and move it!!