Virgin cannot be allowed to keep the franchise during a dispute, any more than First can take over as 'business as usual until told otherwise'. So, DOR seems ideal in this situation.
If it was as simple as kicking up a fuss and being allowed to keep running the franchise until a final, final, final decision is made (I'm sure the company would see every reason to use every loophole in the book to keep appealing, seeking further reviews, referring it to the EC etc) then everyone would do it. Franchising would be a nightmare as it could take years to sort them all out.
Clearly the people who signed the petition and are so very vocal about allowing Virgin to run things in the meantime aren't merely supporting Virgin, but using it as a way to attack a Government they don't like. I doubt Labour would have had the same fuss, especially with SRB being a Labour supporter and having donated quite a lot of money to the party.
Can you imagine if National Express had kicked up a fuss when it lost West Anglia? Could they have argued to carry on running things while an appeal was made, along with all the other tricks that Virgin will employ?
It doesn't matter that National Express was regarded as not having done a good job, or at least it shouldn't. The tendering process was either right, or it wasn't. If it wasn't then nobody wins and DOR steps in. Virgin cannot run the franchise any longer than it ran until - beyond that it doesn't exist for anyone until a winner is chosen and the new franchise, with its new rules, can legally start.
If we want to ditch traditional politics and switch to a system where popularity makes decisions, and people can vote by ranting on Twitter or setting up a Facebook page, then clearly Virgin would win. In fact, Virgin could win lots of franchises and contracts, especially with the 'not for profit' offer that I'm sure isn't quite as clear cut. For one, Virgin would still have to pay salaries and I'm sure management could still pay themselves quite handsomely. Does anyone believe these 'Safety Camera Partnerships' that were set up under Labour were anything more than clever ways to allow certain individuals to get very rich, despite the partnerships not making profits?
And without profits, presumably VT wouldn't have to make any payments, nor would there be any money to invest in upgrades.. so it's hardly logical to run a train operator that doesn't seek to make profit. But it looks good, and is bound to get support.