There is only one thing that dimensional space is good for, and that is for serendipity. When you can talk to anyone, you talk only to those you already know you want to talk to. When you're located in a point in space, you talk and interact with others that happen to be near that point in space. This is why the few areas that virtual reality does seem to be useful is for meeting new people, or for activities where limiting yourself is the whole point -i.e. games.
Maybe for exploring, but if the main thing you wanted to do was to talk with people, why not let you jump straight to them.
It's interesting that arguably the world that got the most traction, IMVU, eschews movement and only lets you jump to predefined spots, which lets people stand or sit next to each other faster..