I think there's also a problem of trying to make the online space "for everyone". These virtual worlds have existed for decades now, even back in the 90s with stuff like Worlds. Gaia Online had player homes and a town square type chat space back in the mid 2000s and definitely wasn't the only one. Apparently Garrys Mod had a similar space with GM Tower in the late 2000s. Every MMORPG has had this to some extent.

You can argue that the tech wasn't and still isn't there yet for non-stylized online spaces, but at the end of the day, people who want these spaces will use the ones that already exist. There's not some huge barrier to entry that Meta (or any of the modern chat focused ones) are somehow eliminating, and hard focusing on VR creates even more of a barrier to adoption.

I don't think there's many people out there going "oh, if only it was more like this" or "if the graphics were better then I'd use it". That's not how digital social settings seem to work. In the real world looks can matter for purposes of safety. Online, as long as you're comfortable at your computer or in your house you're set.

The only thing that seems to matter is the core draw (as you said), and the communication methods offered (text chat of different forms, voice chat, 2d or 3d graphical ability to "emote").