Indeed.

In animal crossing, the player doesn't feel the characters cold, hunger, head aches, sleep deprivation or flue.

The player doesn't really experience the dreadful responsibility for a kid not to die, the requirement to fill forms, queue with irritated people, be stuck in traffic or the sub every day, etc.

And above that, the interactions are in this context. Nobody tries to hit on your girlfriend who you built your life with, no divorce can take half of your house, no firing send you back to your country because your visa depend on it. You don't have an asshole boss, an entitled customer, an asshole clerk or a depressed librarian.

Prosperity is easier when things are predictable, you have low risk and people are homogeneous. E.G: it's easier to live as a Swiss in your own country than as Tunisian refugee in china.