I can't imagine many status holders are flying Lite now, it has never helped much and the price difference is often a few dollars.Where I do see the trouble is for ordinary people who chose to fly Virgin regularly on a Lite or Choice fare. Because it is now based on spend, you'll need to fly a lot to earn the same level of status you once earned.
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That's fine, those credit cards are paying VA for that lounge access, it's not a free ride with cuddles and kisses because they are BFF'sThat is no where related to the status. Lounge access is not limited to status holders only but also to those pax who have specific credit cards...