Just arrived home from LAX (VS008) and no IFE was working. We were handed a 'sorry' card just before we got on, which was puzzling, as it was for a flight delay - and the flight was on time. However, staff on board explained it was because the IFE wasn't working - it hadn't been working on the way from LHR and engineers had been working on it since landing. Seems it had been decided to fly without entertainment rather than cancel the flight (would they have cancelled the flight because of this? I'd doubt it!) Then transpired that we'd been given the wrong forms and the right ones were issued - these say that compensation of either £20 (against a Virgin holiday) or 4000 miles is up for grabs. Seems a bit mean to me - I remember a previous flight, where just my system wasn't working, and I'm sure I got either 10k or 15k miles... would I be mis-remembering? Has anyone else had this happen?
Sorry to hear you had a whole flight without IFE, that's unfortunate. It's often stated but worth repeating that IFE does not form part of the contract so VS has no obligation to offer anything for a non-working system. In this case it seems from what you're saying that VS knew and attempted a fix, but that was not possible in time for the flight, I am sure for some it was a long flight ...
I've noticed that VS has gotten much more co-ordinated about issues such as delays and IFE problems, and is actively handing out forms for some compensation in advance. This happened to me at EWR a few weeks ago when the VS2 departed at 2 am and not 930 pm. We were given a standard delayed flight miles claim form, I thought the staff handled it well, and the standard forms offer a process and conformity lacking previously when this was at the whim of crews.
So in summary, no I don't think there's much you can do, I'd accept the miles and also accept that problems happen, though hopefully not to often to you.