I agree with much of what you say, but I'm not sure the dystopian conclusion is the main one I'd draw.

Improving your ability to connect with and enjoy/learn from people all around the world is one of the main value props of the internet, and tech like this just deepens that potential. Will some people take this to an unhealthy degree that pulls them too far out of reality? Yes. But others will use it to level up their abilities, enrich their lives, create beautiful things, and reduce loneliness.