while I kinda agree that it's probably needed to isolate it from the virtual ground, that's not the only reason. For example, if you removed the virtual ground and powered the circuit with a bipolar supply, you would still need the AC coupling capacitor... for the reasons stated by w2aew.
The ambient light is going to bias the transistor on in a small linear region. w2aew described it just about perfectly, it will be like little wiggles on the DC level, probably just a few microvolts, and the AC input capacitor will remove this BIAS caused by the LED and allow the signal to be amplified.