Where I do like the card reader idea... I think they would cost a fortune for VS to maintain. When they're not in use, some ignorant careless passenger will be poking at them, or letting their children cram gum and candy into them. I know I'd be pretty dissapointed if I knew it were there, intended on using it, then sat down to find it caked up with gum.
I think as far as the chat goes... the problem you'll have is by offering MSN. If you really intend for people to use it. I know MSN messanger is popular in the UK, but AIM is far more popular in the US (especially with people in my age bracket and younger who have grown up with the technology). For us, AIM is more common than calling someone to plan an evening outing, and expressions like brb, lol, etc, are more common than actually writing everything out. It's become a way of life, and I think simply limiting the service to MSN will cause people in your US market to not use the service. That being said, if you offer all of the major services: MSN, AIM, Yahoo Messanger, then you're in business, and you're catering to many more people.
I don't know how far you're going with your proposal, but how about adding in Connexion by Boeing services, like LH has done on some of their aircraft. And please- whole aircraft, not just J for those of us who can't fly up front all the time

I have a Latitute X1, which is nice and small, and I have no problems using it in Y- but a pay-per-use wireless internet connection from Connexion by Boeing would be a nice nice addition.