Hi,
First note that slices can grow to at least 4GB, or larger depending on your virtual disk size.
There's many reasons for using a split disk over a single monolithic file.
The virtual disk split file is really the best choice even while it may seem a bit unlogical at first.
With split files you:
There seems to be a notion of "but it will be less performant", but in practice that is just not true.
Another side note is that, using your method, you can _only_ make backups when the VM is shut down.
If you try to make backups with the VM running then due to how the guest OS works, the backups can be corrupt as the guest OS is still writing to file allocation tables and files during the time it takes you to make the backup.
--
Wil