I'm curious if there is any way to create such a network so that if one machine is hosting a couple of VM's and one of the VM's gets attacked, it doesn't take down the network. Is there anyway to do this?
Simple answer: Yes.
With load balancing you can handle pretty much handle anything. The only hard restriction is your connection needs to be greater then the flood of icmp packets.
This being said it's very expensive to setup and far to long to explain in this format. If this is personal or a low traffic page say under 2 mil consider 3rd party solutions like cloud flare
Note: I'm not affiliated with cloud flare and don't personally use their service. I know of them through a speech one of their engineers gave regarding load balancing
Simple answer: No.
If your pipe gets flooded you are going to go down.
Best Fix: Buy hardware dDoS protection. :)