No, they aren't.
> Go look up the definition and history of the word "virtual."
Even if that supported your argument (which it doesn't, see next paragraph), it wouldn't matter, because the meanings of phrases aren't necessarily determined by the meanings and/or history of the component words in isolation.
But FinCEN's definition of "virtual currency" is consistent with the common definition of "virtual". Their definition of "virtual currency" is exactly the #1 definition of virtual  applied to the uncontroversial definition of "currency". (And calling Bitcoin virtual currency would also be consistent with definition #4, particularly definition #4a, though some non-electronic entities that would meet FinCEN's definition would be excluded by that definition.)
> And I've been making this point since before FinCEN started caring about bitcoin.
You being wrong for a long time doesn't make you any less wrong.
> I don't know if you understand that the government does not create truth.
I don't know if you understand that legal definitions established by government do create meanings that are used in legal documents such as contracts, terms of service, etc., whether or not they are "truth" in some abstract, idealized sense.
 from: http://www.merriam-webster.com/dictionary/virtual
It has to not be a currency to be a virtual currency, by the definition you favor.
Any answer I can imagine that you would give would invalidate other things we all consider currencies, unless you draw a line based on non-fundamental properties (e.g. such as backing by government force or market cap). And you can't form a proper concept using non-fundamental properties.
So the definition you favor actually supports my view, though I think the definition you favor lacks appropriate context and nuance (which is often true of dictionary definitions).
Talking about the government defining something creating meaning is just irrelevant. You're obviously telling me things I already know, but the government is technically incorrect on this. Just as they are on calling capital gains "unearned income," for example, since many successful investors work hard and do earn their income.
Here is the definition he favors, it has to be not formally recognized or admitted as a currency to fit this definition.
I shouldn't even have bothered responding to such a worthless comment.