I wonder if Anshe is behind this? :D

Though I still waiting, the next generation of virtual world will need to balance realism and fantasy and will target generating practical value for user rather than for fun.

For example, the reason for the virtual world is to do things what the real world could not. In this aspect, the system will well take advantage of the world and culture the user already live in and seek way to bring existing value to higher level.

For example, instead of modelling a virtual world built entirely of fantasical land and strange name, why not just adapt an existing premise like NUS, NTU, SMU to the virtual world ? Imagine a virtual world ppl could relate to and familar with and then able to do thing that cannot do physically in those premises.
A case could be organized a virtual party in virtual SMU where avatars could join and interacts, exchange mail, and communicate in different ways than physical communication. And how about a virtual library, where one can walk into and see Steve Job, Bill Gates talking their latest books ?

The virtual world can take advantage of video conference, IM, email, RSS, and all kind of technology exists today.

A virtual world like this seem to be appealing since t is something user is already familiar with.

Like Doom game, user can also built their own virtual world, for example, Built their own Silicon Valley, and as user walk around the virtual SV, they can see building of Google, Microsoft, Yahoo etc,