Virtualenv allows you to seamlessly run multiple Python ecosystems simultaneously, even within the same project directory. It's basically primitive containerisation mechanism that predates any actual containerisation systems on Linux.
You do not have to use it, but then you can easily slip into a sort of "DLL hell" (multiple incompatible library versions installed system-wide) with multiple projects — or need to bundle all dependencies within your project directly. None of this is specific to Python, really — any shared library system has the same challenge. How many other systems are there in active use making it as easy to use multiple incompatible versions of shared libraries per project or within the same project?
When in doubt, you can always retreat to the basics in Python world: put packages you need in a path of your choice, and point PYTHONPATH (sys.path) at it.
As for the screaming, I'm talking about pip, which has the unique property of just refusing to work by default unless you use --user (what most other package managers now call "global") or are in one of these pretend-global environments. Ultimately it's just a paper cut, not a show-stopper, but it points to not just a failure to address the pain points of the package ecosystem, but a seeming refusal to do so.
You are right that there are many problems with packaging in Python, and yet I feel like virtualenvs are the smallest of those.
I believe we also need to compare tech this old to tech from the same era: obviously newer ecosystems had the benefit of hindsight, but how does managing dependencies compare between Perl and Python, for instance?
The biggest problem with Python packaging is — IMO at least — that it is actually attracting so many evolutions and proposals that ot is hard to stay on top of if you do not make Python packaging your core interest.