It is a factual matter, easily discovered through simple searches, that non-Western cultures often take a different approach. Including, literally, ancestor worship. I am not making a judgement on which is better. I believe there are multiple healthy ways of dealing with grief, and "mourn & move on" can be one, but not the only one.

This is very far from an obsessive interaction with a semi-emulated version of a dead person in VR. However things wouldn't have to be that extreme.

In cultures that practice it, it's not uncommon for a small shrine in the home to be setup. And yet that is of limited access to family located further away, so a digital form of this not bound to a specific location could also be of use to people from these cultures. There is no reason that such things couldn't compliment existing practices of honoring ancestors.

You are absolutely right though that there are different ways of dealing with grief!