I see.
WFQ on CMTS downstream interfaces works per DOCSIS service flow, not per IP flow. It is how Comcast, for example, do their 'Powerboost' - ERBA service flows. It doesn't care how many IP flows are opened in each service flow and works to provide fairness between modems and try and combat the P2P effect I mentioned.
Hope that helps.
Edit: With regards to smaller packets remember what downstream format DOCSIS has - MPEG 2 frames. Smaller IP packets are handy to avoid wasting bandwidth on padding.
I can't say for sure VM aren't using it but, certainly, there are other explanations and if anything the behaviour suggests they aren't. If they were the additional TCP flows would, I would have thought fail to draw more bandwidth.
If they are, good. Fairer bandwidth allocations during congestion periods is a good thing.
That said I am no QoS expert. It's a field all of its own. Discussed by people way smarter than me.