I have to agree. Many will say that you don't need IFE on short flights, but it gives that extra option. Sure you can read, listen to music, but kitting out a family with ipods for the yearly holiday flights is a bit excessive. After an hour of reading, or listening to music, at least there's that choice should you want it.
A movie generally passes the time pretty well, and on the flights I've been on, when entertainment is provided, the majority of people seem to partake. Guess the airlines have done their sums though, and reckon if they can strip out IFE and keep the same yields and volumes, who can blame them. Each to their own, but entertainment especially on longer flights is a priority.
Brother and sister-in-law both hate flying, but wanted to visit New York, so I recommended Virgin. After the trip both said they'd much rather do a 7 or 8 hour flight with VS, than a 4 hour flight to the Canaries or Spain with EI or EZY with no entertainment.