Hosting multiple web sites in a single Windows Azure web role is much easier than it sounds, all you have to do is update the ServiceDefinition file as below to add in a new Site (unfortunatley, this can't be done via the VS associate menu item) to the Sites node and create an endpoint where it can be exposed.
In the below example I add a new web project to the solution, at the same level as the one create automatically by the VS tools.
When you then run your cloud application you will be able to see that two websites are created within IIS, and only a single node has been launched in the Compute Emulator.
