Sure, in a sense, but I think the point of where exactly it occupies on the hierarchy of needs is worthwhile to keep in mind.
It really seems to be art specifically which people are often keen to describe as worthless, not any particular category of good that artwork might fall into.
Debatable. One of the most popular uses of VR is pornography, which is targeted at one of the needs on the very bottom layer. Other uses are probably mostly serving mid-level needs like social belonging or esteem needs.