I don't think that Virgin should see themselves as Blue for the same reason that Hunter doesn't see themselves as Blue. Virgins, like Hunters, would be forced to not claim before they're needed, at the risk of mafia trying to kill them. Let's face it, most players wouldn't be comfortable wasting a mislynch on an uncced clear. Not to mention, a lot of third party roles, such as Fool and Lyncher, can complicate a Virgin claim. Also, in Gunsmith setups, Virgins would have to worry about claiming at the risk of Mafia having a gun. Ultimately, this role is like the Hunter but like a mirror image of it. Both role's abilities are activated when lynched but Hunter removes a player while Virgin saves a player. Also, town will be more inclined to use Virgin on MYLO while Hunter is saved for three-way LYLO. You may argue that it gives the Cop or Tracker an extra day, but so does Bodyguard, Doctor, and Watcher. In fact, those roles could give more than one extra day.
Wasn't this suggested previously? Meh. An issue is that when you see 'XavierBarren, the virgin, has died a bloody death.' as a result of the night kill, can you imagine the trolling that will follow? Seriously, it's going to make some games relatively intolerable, in the bronze tier for example.