Yes, Virginia absolutely has wine I'd serve to the boss. I serve it to friends who know and like wine all the time, and they're always surprised. There is actually very good stuff here.
A few things are true:
1. Ten or more years ago, it wasn't like this. It's been a long time coming, and you still have to do your homework to find the good stuff.
2. IMO, the reds have really only become drinkable very recently--the last 4 or 5 years. And the good ones are many fewer than the good whites.
3. Yes, in general you're going to have trouble finding comparable value. The good wines aren't under $20, in contrast with much of California and some of France. If your primary criterion is wallet-friendliness, you're not going to be buying a lot of Va. wine.
But there's finally good stuff out there.
Some personal faves:
Almost anything from Breaux. They do wonderful things.
White Hall Viognier -- wow. (And I would say the White Hall wines are also excellent value.)
The whites from Linden, especially the vidal/riesling and the late harvest vidal.
Most things from Pearmund, but especially the viognier, the petit verdot, and the dessert wine (late harvest riesling, I think)
Kluge sparkling wine or chardonnay if you can still find it. Very sad. Haven't tried the Trump yet.
Narmada's Tannat or Yash-Vir. Yash-Vir is their merlot-based bordeaux blend (named after their grandchildren).
The whites from Corcoran (used to be Waterford) -- terrific.
IMO, Petit Verdot, as a single varietal, is great in Virginia. It's going to be the Virginia red like Viognier is the Virginia white.
There are a bunch down in the Charlottesville area that I haven't tried yet. Haven't been to Veritas, haven't tried Michael Shaps' wines, been wanting to. I hear that area is really good now.
And some contrary opinions:
Hats off to Barboursville for being Virginia pioneers, but I find them overrated and overpriced. Haven't found one I really like. But it's been awhile; I should give them another try.
Lots of people like Tarara. Seems touristy to me, and not focused on the wine.
I really can't get behind Cab Franc, anywhere (except the Loire). I share the Paul Giammati Sideways opinion of it in American wine.
If you're not shopping primarily based on wallet, and you haven't tried Va. wine lately, try it. There is a lot to like.