Second Life
This site has some extremely interesting speculative ideas in it.
First, it documents the rise of real-world companies buying virtual space for promotional purposes. Real-world shoe and clothing companies have already done that. They sell products in the Virtual Reality world Second Life just as they do in the real world, because it is cheap, effective advertising for their real-world products. Toyota has also bought space, and might (I couldn't tell from the article) be selling virtual cars. This is similar to the commercialization of the internet. This movement is what will make Virtual Reality widely accessible to ordinary people.
This Google Tech Talk is by one of the creators of Second Life, and goes into more depth about the inhabitants, limitations, and economy.
The site speculates that when real-world enterprise is dominated by robots and other automatic systems, that perhaps the human economy will move wholly into virtual reality. That is a beautiful idea, because as the site documents, the economy has already entered virtual reality. It is also quite clear that a huge number of people in the world are no longer capable of supporting themselves in the increasingly high-tech world, and there is much evidence (such as Moore's Law) that suggests that by 2060 or so, almost no one will be able to support themselves in the real economy. It almost seems obvious that financial pressures will increasingly confine people to smaller and smaller spaces, while the means necessary to work and be entertained simultaneously become small enough to fit in those spaces.
As obvious as it is that Second Life is the beginning of something that will never go away, I have absolutely no desire to participate in it. We can already see that the upper class will look down on people who confine themselves to a virtual life -- "virtual people." With good reason, most people will struggle very hard to stay out of a second-hand life. This second-hand life will become more and more enticing, in most ways better than the real thing, and a tremendous amount of pressure will be brought to bear on people to push them into it. This will be called the environmental movement. Eventually though, nearly all people will prefer a primarily virtual existence to the sparsely furnished real one-room flat the government assistance affords them. Fortunately, the VR hardware will be eminently affordable. Perhaps ordinary people will still be able to afford vacations to the now pristine environmental paradise in the real world. This is the point where I can't speculate any further, because it depends on whether the virtual population mushrooms far beyond the resources of the real world. If it does, we get something like the Matrix, and if it doesn't, we get population management. The choice seems to be a moral one.
Are 1000 (or eventually 1,000,000) virtual lives more or less valuable than 1 real life? That's the question that we will be forced to answer some day by purely economic and environmental considerations.
Personally, I prefer the 1000 virtual lives, and I believe that will be the direction we will take. But perhaps some amazing discovery will forever remove the distinction between real and virtual.