Mathematicians have long lived in a useful non-physical reality. So have many artists and writers.
Certainly improving physical reality remains valuable, but the non-physical world will likely grow in real as well as ephemeral value at a higher rate.
From a purely functional angle, the physical world does not include many affordances that the digital world provides for our minds, ability to communicate, learn, discover, etc. Virtual worlds will adapt to our minds, being the ultimate mental tools. And our minds will co-adapt.
Where that goes, nobody knows. But along with AI its likely to be the story of this century.
Value requires purpose, so the question is: from what is each individual's purpose derived in the virtual world, where we can leave the physical behind? And is there a purpose to our physical being that we do harm by neglecting?
To me our physical world has much purpose, and the virtual world, in whatever form it takes, is only valuable to the extent it allows me to fulfill my purpose in the physical.
With the right feedback and props almost any pursuit could be closely simulated. VR could transform practical education and training and make it so easily available that anyone wanting to learn any skill could progress through the most difficult and expensive stages of learning for essentially free and then go on to complete their training in real life if they so choose.
The ability to meet with people from anywhere on earth instantly with all the nuances of physical presence properly simulated would provide the equivalent network effects of living in a vibrant urban centre, again for practically no cost.
The benefits of really well executed VR are almost identical to the invention of a sci-fi teleporter and replicator. The places you could visit and activities you could perform would probably provide 80% of the value of the real thing. For people who can afford to do these things in real life it's a pale imitation but for those who can't it's revolutionary.
What purpose does The Simpsons fulfill in the physical world?
This is just a step further than what already exists. And it's already happening; nobody can stop it, no matter how many pearls you clutch.
Except it does provide many things that are necessary (e.g. food, clean water) whereas the digital world is not necessary for anything, really.
So it is necessary.
We could survive without it, in some sense, but not without a global catastrophe. Coordination, communication, efficient finance and logistics, etc. provide huge leverage on our physical resources.
My view of Facebook is just as dim as yours.
A site like this is bound to have naive views of arts like this. But it's not correct.
Art lives within the world of physical reality - otherwise, we would not be able to perceive it. Art is the enhancement of some aspect to reality, not a departure from it.