That is the deal I have just taken advantage of.
I am a long time Sky subscriber and have used them for TV, Broadband and home phone, all of which have been faultless to be fair.
I have checked Virgin media prices and content on a monthly basis and have always found VM to be more expensive, probably because of a regular discount I received as Broadband user that should have lasted 6 months but I got for 2 years...
Anyway, having recently dropped Sports & Movies, lost my nice discount (because they realised I shouldn't get it) and wanting to have another box installed upstairs it was clear to us that VM was a better deal all round if we took the "Sky Switcher Offer".
In terms of what we watch all of the channels that are important are in the XL TV pack, although I do watch Sky Atlantic (I missed Battlestar Galactica first time round) and will miss it a little, I gain some sport through ESPN.
Sky Anytime+ is poor IMHO and I am looking forward to having some real on demand choice.
The Broadband was solid despite the Router being very cheap quality and whilst the SuperHub may not be a stunner it can be used as just a modem, which will suit me fine.
The phone line is disgustingly overpriced in my view (£2+ extra for Caller Display!), so while we have to have it, we will only use it for inbound calls.
All things considered, VM is the right deal for us at this time based on what we watch, how we watch it and what we need (equipment wise) as a package.
Sky clearly have the best "linear channels" line up, but that just isn't as important any more based on how our family consume TV.