VT-d is simply Intel’s term to describe their IOMMU. AMD call it AMD-Vi. The role of this unit is to control Device Memory Access (DMA) and interrupt remapping.
Basically, VT-d provides some important aspect of isolation. The best way I have to describe it is by using a PCI passthrough example. Here’s my –simplistic – explanation:
If you dedicate a DMA-enabled device to a particular virtual machine, let say your network card, then without proper VT-d protection, this VM would have access to the complete host memory. The VM would be able to break out of the VM container through the view of the network card DMA. If VT-d is correctly implemented, the network card would only have access to the VM memory it is assigned to, nothing else.
TXT will only use VT-d to build isolation around what it needs to evaluate: measure code, send those measurements in some TPM protected registers (PCRs) for later use, .e.g., remote attestation, unseal operations. If you compare with my previous example, TXT is basically using VT-d the other way around.