I’ve been asking around why the default isolation response has been changed from “power off” to “leave powered on”. It seems that this is done because a lot of customers had VM’s being powered off unnecessary. This happened because the service console or physical switches weren’t setup redundant and thus caused HA to kick in. In other words, for those having complete redundancy, switches and nics, change the default back to “power off” or use the new option “Shutdown VM”.
Shutdown VM requires VMware Tools to be installed. If HA is unable to shutdown the VM within 5 minutes it will be powered down. I would prefer this option, especially when you virtualized services like Exchange, SQL, Oracle etc.