Tobzalp, perhaps BM could start a thread called "Some Truth about the MC incident" and tell you what actually happened.
BM,
Get it. He saw, and he avoided. How did that fail????
It failed because regardless of what the VFR pilot did, the Virgin aircraft still had to avoid without seeing because of the RA it received.
Whether it was 400ft or 800ft (I personally don't know - surely it's not the old "I'm 400ft from him and he's 400ft from me therefore 800ft"! ; ) - it doesn't matter. The point is that evasive action was required on the part of one aircraft, even though the other aircraft had it in sight.
If you think that RA's are fine then I guess for you the system works fine.
BM, do you think that RA's like this should be a commonplace event for Class E airspace?