On an ethical level, I think we need to understand whether we are creating thinking feeling creatures who will be doomed to suffer as data slaves before we normalize this. If I removed your brain from body, removing all sense pleasures, drowning you in darkness and isolation, and the only input and output you had were binary signals for some abstract data problem, you would experience profound silent suffering in an eternal private hell.
This truly would be the invention of the matrix, but not for an army of tyrannical robots / AI, but for the use of humans themselves -- a modern day slavery of the mental kind.