Highly-paid actors are celebrities. They are engaging in a way that is incredibly hard to describe but nonetheless seems to be widely recognized. They aren't necessarily "good actors" (a term that is itself hard to define), but people enjoy looking at them. People go to a film just because some well-known actor is in it, and that's what makes them so valuable.
Every film set is chock full of talented people. Plenty of people could have done great work as, say, Tony Stark. Hollywood is full of beautiful and talented women who just never manage to get that "it factor". To displace highly-paid actors they'll have to replicate that, and that'll open up a whole new set of questions.
The ones who go first will be the low-paid actors who surround them. They are the ones doing sitcom pilots that get shelved, or commercials for dog food and allergy medicine, or being saved from having a bus dropped on them. Such actors are actually reasonably well paid on the days the work (over $1,000 a day for big-budget films or TV; $9,064 for a week as a guest star), though most of them work only a tiny fraction of the time. There are more people making a living at that than being a star, though the odds still suck.
I'm sure when Tron came out lots people said "practical effects will never disappear". And yet with few exceptions they mostly have.
They get to do things that humans can't do. They can entertain in entirely novel ways. Using them as a substitute for human actors is kinda the faster-horses-not-cars of movies.
We use CGI characters for inhuman effects, but I think it's often not very effective. I don't care for most superhero movies because I don't really care about watching CGIs punch CGIs harder than human actors could do. There aren't any stakes; there's no dramatic risk. I'd rather watch a martial arts movie, which is limited by what humans are capable of.
That's still something we're learning. Part of what made the Lord of the Rings films more interesting than the Hobbit follow-ons was that the latter used more practical effects. New Zealand was a big star in LotR; Hobbit used more CGI backgrounds. Audiences felt the sense of place.
We'll improve the tech so that it seems even more realistic. The new technology used in The Mandalorian is really exciting (though I'd be curious to see how it played on a big screen). But it was at its best when it made up very real-world seeming worlds, while animation uses digital worlds in totally unrealistic and even more exciting ways.
So I'm expecting that we'll continue to have practical effects in the best movies starring humans, and continue to have human stars. But we're still waiting for the first mega-hit CGI star who can do whatever magic it is Robert Downey Jr. does. When they can catch that, RDJ may well be out of a job -- not replaced, but the entire enterprise gone.
I wouldn't expect that to change given this technology either. There's a market that would benefit greatly from this, though: marketing and training videos as well as stock-footage.
Some companies (Samsung comes to mind) already use synthetic avatars to represent their products. Artificial influencers and the like will also take the place of real humans.
Film actors, though, not so much. There's more to a successful actor than just appearing in film (who'd sit at meet & greets, autograph signings or attend shows?) so there's little reason to replace living actors. Deceased ones, though...
Sure, you could use AI to act, or you could follow your most basic gut instinct and slap a famous-for-being-famous person on it and call it a day. Because it’s going to work.
First, actors are not famous for being famous, they are famous because people recognize them and eventually learn their names.
Second, the name recognition is why they get cast as voices. Their name can then be used to promote the movie and the actors themselves can go out and promote the movie.
We probably will see greater uptake of virtual art and artists, but it hasn't been and won't be a revolution that sweeps away human performance.
The fidelity is also a big issue, flat textures and rough normals are not going to hold up to much scrutiny.
True but dynamic relighting is rapidly improving, though it's not quite there yet for full frame hero shots.
Also again, the BRDF/normals of a capture like this are going to be very course. Cloth, skin, hair, eyes, metallic bits etc aren't going to look right if they have too much screen space over time. Quick motion blurred action might be applicable and I could see similar techniques being useful for crowds.
If you are a streamer whose sole income is based on sites like twitch/youtube, getting banned could mean the end of your career and social life. Many streamers live together and collaborate with one another and sites like twitch have rules where you can't stream with banned streamers. So getting banned doesn't just mean getting banned from the site, it also means getting banned from your friend group because interactions with you could get them banned too.
With virtual avatars you could evade a ban by changing your model and also use a voice changer. I haven't personally heard of any cases where streamers use virtual characters to evade bans but I'm sure its at least happened.
It also becomes easier to become a marketing tool. Since Code Miko isn't a physical entity, she could easily be used in video ads just by sending ad agencies her model. No more flights to video shoots, all you need is a 3d animator.