Sorry to hear about your VX experience
I personally am a big fan of Virgin America, especially its affordable first class cabin. Even at $699, it is still a much bargain compared to AA or UA. Just to clarify, AA has only matched VX F fare with its 7 day advance non-refundable business class fares. Comparing AA J with VX F, VX wins by offering a more comfortable first class seat, abundant amount of snacks, and a really excellent entertainment system.
Anyhow, VX is still a low coast airline LCC... so sometimes we need to keep our expectations to a reasonable level. Priority baggage handling is one area of my complaint as well... but then most legendary airlines have the priority tags, but they only worked 50% of all times when it comes to domestic flights. About lounge access, most US domestic first class tickets don't come with that benefits anyway except Alaska providing board room access with a full fare purchased first class ticket and AA and UA offering lounge access to its full fare first class passenger on a three-class cabin on the premium transcon routes (JFK to LAX and SFO, and return - paid or mileage, but not upgrade).
About FAM (Federal Air Marshalls) issues, you will get the same speech when you fly on the legendary or any US airlines as well. They honestly can't tell you, but as frequent flyers, you know they are the FAMs. Most airlines have to withhold two seats for sale these days in first class. I guess VX is too new but I am sure they are smart enough to without two seats for sale for now, and there are reasons for them to add another row of first class seat.
About maintaining a separate first class cabin, I think VX does the best that they can within the limitation. They cannot install curtain except the transparent one, which they may want to consider. The purple transparent separator is very nice indeed. If a hard wall separator is used, the cabin will be less airy.
I have to agree that the compensation is not great, but on Alaska, they only offer you an apology and a upgrade certificate for you to use in the future. I don't even know if AA or UA offer any compensation on the same situation. VX seems to be very generous by offering $500 voucher though.
But I somehow feel the government should pay for those downgrade passengers in some ways right?
How to spot a FAM?
Usually well-built men in the 20s and 30s with a strong build, wearing business attire and were the first ones to board. They usually seat at the aisle seat in bulkhead and second row, and during flight, they are treated like regular passengers but they decline all alcohol requests (or not being offered one). They usually stay awake throughout the flight and often reading books or manuals. You also often spotted them boarding the flight in advance. I still think that cover is too lame. TSA really should come up with something better.
Sorry to hear about your VX experience! I hope VX can right the wrong!
Carfield