I can clearly see how it replaces the locationless. And I also see how this can be a better way to handle that. Especially if you're more interested in actually visiting the places (but obviously weren't the first one there).
But I have to agree with 4agers about virtuals. Geocaching isn't just about finding a box or a container out there. Part of it is the journey and there are other rewards at the end of that journey - sometimes a view or some kind of information that you can't learn anywhere else.
Yet, Jeremy, your point about virtuals becoming just "come see this really quick" type searches makes the strict guidelines for them necessary. Like the armchair caches (lots of them in Germany), things like that really need to be a different "game" rather than a geocache.
As long as there are truly meaningful places to search where a container cannot be placed (National Parks, WashingtonDC top my thoughts right now), I hate to see the possiblity of new virtuals on GC.com disappear all together. The new earthcaches are a great example of where this can be done well.
I also know that many cachers view a virtual as a good "starting place" to create a cache. Perhaps there are more things that local cachers could do to help newbies feel comfortable placing caches with containers.
Just my 2cents.