What can I say. I'm just a sucker for rooting for the little guy.
My mistake initially though, I was thinking of QF

The first PS earn does require 250SCs though (300 on QF), it goes down to 200SCs to retain. It's not a lot (in terms of what you or I may fly), but for the majority of the population they would see it as being quite 'frequent'. They may not be earning in $ but they are earning in BIS actually on VA metal (I say this as I remember seeing some posters complain that despite having enough SCs they couldn't get SG or WP as they didn't have the eligible sectors on VA as all their J flying was on VA partners, are these more valuable to VA than BIS Y?).
My sister is a good example of someone who travels on her own coin frequently to visit family. Even though she only 'needs' 200SCs to retain, she usually does ~320/yr all up (inc 1 international flight). The free baggage really endears her to VA, and she gets excited about the extra points (which at her level she sees as more valuable than SCs) and said she felt like a rockstar when she got to use the 'special line' on a flight to Bali. She feels quite special going into the lounge too, on the two free passes. Most non-AFF low level FFers are a pretty easy bunch to please and don't expect a lot. She actually quite enjoys being Silver, and actually has no interest in Gold

She did get the Silver pack and made a bit of a ceremony opening it. She's due again in the next two months (hence my interest in the topic). She would have been rather underwhelmed without it, not a deal-breaker, but a bit deflating. Just feeling that little bit special has been enough for her to decide on VA if most other things are equal.
My initial QF packs were rather yawn-worthy too. I just think that it doesn't hurt to package all tiers in a similar way, even if the higher ones are nicer versions, or at least doesn't make the silver seem as though the airline doesn't value them. At least when QF were yawn-worthy, they were yawn-worthy for everyone. SG and WP already get treated way beyond PS (and deservedly so) on things like lounge access that people like you and I actually value, but I think just mailing out the PS card in an envelope the same way you'd mail out a new Red card is a bit insulting.
It's a moot point anyway, sounds like VA are doing the right thing.