What would be the benefit of having the citizenship of a non physical country? If I still live physically in country X I will still have to pay taxes there, respect the local laws and such. The only "benefit" is that I might have to pay some more taxes to that virtual country just like US expatriates do, and maybe potentially have some consulate services or easy visa access? That doesn't seem much of a country.

Of course in reality the main goal would be to be able to create your shell companies in that virtual country so that you don't have to deal with a potential political change in the cayman islands. I can imagine that goal is very attractive to some, but I don't really see that as a positive for society as a whole.