To me they (Virgin) had a limited appeal, as really is only those in the cable areas that can have thier "full package" everybody else just gets the "normal" broadband down the phone line + whatever deals they do for mobile and phone packages. And there is a lot of competition for that!
For all its bad sides, sky does (to me anyway) offer a better deal.
I hate to say it, but murdock does have too many fingers in too many pies to worry about Virgin. Fair play to Branson for sticking up for his customers, but the big boys usually always win (I was a BSB customer back in the 80's and we lost out when sky took over)
as I already mentioned, the new BBC service may be more appealing but I suppose its wait and see time.