Recommend adding (1996) to title. That doesn't take away from it, it just shows how prescient the thought was.
Going forward, there are the persistent shared modifiable virtual worlds, from There to Second Life to SineSpace and beyond. There are many good 3D CAD systems now, and the pro ones have some simulation capability. There's Minecraft and its imitators.
We have the capability, and sizable numbers of users. It's not mainstream, but it's in wide use.