http://en.wikipedia.org/wiki/Lunar_Landing_Research_Vehicle
(And I see another test pilot, Joe Algranti, also had a very close call flying a second-generation LLTV -- ejecting 0.6 seconds before it crashed!)
NASA came very close to losing more astronauts during mission prep for Apollo, in addition to the Apollo 1 crew. (Even if we leave aside the four astronauts killed in T-38 crashes in the 1960s.)
The computer kept flying the machine despite the interrupts and reboots due to the radar switch that Buzz had left on. It was really marvelously designed to be able to keep on executing its highest priority tasks.
The reason for the (semi) manual control was that the designated landing spot was a boulder field. The computer kept on operating the throttle.
Source: Apollo 11 Lunar Surface Journal.
The cargo ship was expected to and successfully docked with the ISS later in the day.[2]
[1] Russia Launches ISS Cargo After US Craft Explodes
http://www.voanews.com/content/russia-launches-iss-cargo-mis...
Russian supply ship poised for launch Wednesday
http://spaceflightnow.com/2014/10/28/russian-supply-ship-poi...
[2] Russian Progress M-25M docks with the ISS
http://www.nasaspaceflight.com/2014/10/russian-progress-iss-...
To put it in perspective, Apollo flew on a rocket with five engines producing 1,500,000 lbf thrust each, on the first stage alone. By contrast, the Virgin motor produces 60,000 lbf thrust for 70 seconds.
The Apollo program had a safety culture configured so that if anyone identified a safety issue, they became responsible for the problem and responsible to sign off that it was corrected.
http://en.wikipedia.org/wiki/Budget_of_NASA#Cost_of_Apollo_p...
Edit: It's also worth noting that the same entity that ran the Apollo missions currently has no way of putting people into space, and the last system they had also looked like a plane... and had problems with exploding and killing people.
That's funny, because you were the one who compared them first.
Although the Virgin 60,000 lbf rocket is small by the standards of Apollo, it is still an extremely challenging problem. There are no problem-free or inherently safe options, so safety needs to be engineered in from the bottom up carefully and competently. Otherwise, failures like this will not happen just once.
The engineers involved would do well to study the Apollo program and other successful complex engineering efforts such as nuclear reactors, as well as the counter examples of the two space shuttle that were lost due to management putting schedule ahead of safety.
The flaws in Apollo One were so severe the three crew died on the launchpad. Describing that tragedy as "no in-flight deaths" is accurate but misses some important information.
http://en.wikipedia.org/wiki/Apollo_1