Legally, I doubt any aviation authority can do anything about VA's and I don't think they're a bad idea. There's no reason their arrangement can't change to charter + ticket sales as far as the CAA are concerned when actually, having met Noel who is a fine chap, their arrangement sees Manx2 taking care of many things itself. It's just a shame that it happened to Manx2 again.
Regarding VA's in general. I think they're a good idea. The requirements of acquiring an AOC in the modern day in any Western European country is prohibitive. I think we should encourage VA's and hope that Manx2 work more closely with their 'suppliers' to ensure this does not happen again. But gear failure is one of those things. Happen to anyone.