I don't know if it's keeping the price down, per sé. The problem with Vircurex is that the volume has dried up to nearly ZERO since they froze people's assets.
That low volume means the little iXcoin they do have for sale gets stale and is slow to move. This can be on the up-side or the downside, as well.
So I don't think much would happen if we forced Vircurex to ban iXcoin.
What would be accomplished, however, is the iXcoin Foundation building a hostile, negative reputation in the industry, towards exchanges. Unless there's outright scams occurring on an exchange, I would be reluctant to demand they stop trading iXcoin.
And let's keep in mind, Vircurex saved iXcoin last year. Nobody wanted to trade iXcoin and Vircurex was about to drop it as well, but they eventually listened to a few of their customers and kept iXcoin on their exchange.
This was a really big deal for iXcoin at the time; now we wanna repay this same exchange by telling them we don't want to be associated with them even though they have not wronged iXcoin and been a pretty solid and respectable exchange longer than any other exchange out there.
Their recent problem stems from last year [which depositors knew about] and the fact they didn't walk off with everyone's money but instead is slowly trying to repay everyone says a lot in an industry where many exchanges have folded and walked off with everyone's money at the first sign of trouble.
I say we give Vircurex a chance. The low volume problem will fix itself as they become more liquid or they won't be able to recover from their losses and they'll go out of business on their own.
Everyone in this industry knows the risks associated with putting your money in Vircurex so I don't think iXcoin will look bad if people lose their money in Vircurex, any more than they would losing it in any other second rate exchange.
Edit: And if Vircurex is in China we really need that exposure to the Chinese Market. 
