There have been several demo applications for 1 on 1 state channels, you can search for it here in the forum. There is also a payment application that uses a payment hub (which is similar to virtual state channels just with a hub you have to trust). You can read about it here:
It includes an intense report and videos. The work on virtual state channels continues. There is a white paper written by @dimitar.chain that still needs reviewers 
I don’t think 116 tx per second are a problem right now. The aeternity network is far away from reaching any limits or bottlenecks. Even Ethereum does quite well with its ~15tx/s in peak times and the ecosystem grows nicely. As long as there is no demand for high-tech we should focus on doing things right and safe. Reliability and user / developer experience of aeternity is key here. People need to start building and therefore they need well documented software and a working stack. In order to receive the attention of the developers (and later users of their apps) we need to spread the word and provide the best possible developer and learning experience when it comes to Blockchain application development. By the time that applications that got build reach thousand of users (which we’re still quite far away from in the whole space, see https://dappradar.com/) the protocol will also be advanced. I hope this answer makes sense for you and like everyone here this is my personal opinion and I’m happy to be convinced otherwise if someone has good arguments.