Edit:
My previous answer was incorrect because the sortable binding needs to be able to update the array. So the solution instead is to not use a virtual element for the if
binding.
<div data-bind="if: $data.Visible()">
<div>Im visible</div>
</div>
http://jsfiddle.net/mbest/5TJ2f/6/
References: https://stackoverflow.com/a/14219177/1287183, https://github.com/rniemeyer/knockout-sortable/issues/58