I think the ability to, as someone mentioned it, have yourself look a bit tidier than you actually are (working from home) could be a huge benifit.
I mean taking away focus on things that doesn't matter in a virtual meeting such as: Where you are sitting - via Virtual Background Your daily hair style status or if you have a nose pimple - Via NVIDIAs AI showcased here. Would be great.
Though replacing yourself with a "digital" avatar I think takes away many of the benefits an actual live meeting provides.