I recently installed a bunch of dotfiles on my Mac along with some other applications (I changed to iTerm instead of Terminal, and Sublime as my default text editor) but eve
It appears the proper way to resolve this issue is to run
pip install --upgrade virtualenv
after you have upgraded python with Homebrew.
This should be a general procedure for any formula that installs something like python, which has it's own package management system. When you install brew install python, you install python and pip and easy_install and virtualenv and so on. So, if those tools can be self-updated, it's best to try to do so before looking to Homebrew as the source of problems.