Yes it's a spin by Branson to suggest that the planes were the solution to seat back entertainment. They'd have done the planes anyway because it's grow or die.

The bigger risk today is Wow! and norweigan airlines with cheap flights.

But I've always found virgin to be a good experience for a fair price. On transatlantic flights, BA is more expensive for less and the American carriers are just awful. They get away with it because their hub-spoke routes have little competition.