I read a while back about how for kids enrolled in online classes, teachers had a hard time telling who was being attentive during lectures without streaming video from every single student. This could be a good lower-bandwidth way to ensure kids are actually present, while also acting as a nice anti-bullying measure since they can't be judged on the quality of their real clothes or housing if it's not a real video.
People are playful and I can imagine that a remote settings is akin to some sort of playful roleplaying setting. So you build your avatar around your remote workstyle - can be funny in a setting where every one knows his peers.
This is similar to workplace settings: casual/avatar if you are not facing customers, formal/no-avatar if you face customers.
Could be cool to see, what happens in the future. Even iPhone supports those live emoji face masks.
I've worked remote for years, and never wanted anything more than a basic "do not disturb" status. The creator says they're doing this to address loneliness, but some of us don't have a problem with addressing loneliness via text (or we get enough socializing in outside of work to be content). For people like me, this type of tool just creates extra mental overhead and distractions. I get that some people are into this because it's neat tech, but I'm really not convinced that it's a real value-add rather than a fad.
Masks have started to arrive! Only a couple more decades until we give up on video entirely.