This seems to be based off the premise that it's not indistinguishable from reality. I think the concept is that the AI are indistinguishable from real people. Is the interaction any less useful than with other people. Plus it says you can visit other "real" people if you want. Personally, I think some ethics come into play in regards to "anything goes" and rulling over AI entities. That's part of my issue with it. If they're indistinguishable from people are they not actually people then?
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