You'd think if anything they'd want to invest in that more now that LLMs could be used in combination to produce a much more natural home assistant experience.

That said, whilst I think VR doesn't have a huge amount of potential (the equipment is expensive and awkward), I think there is still a lot of space for making it easier to meet and communicate with people virtually. There's still a huge amount of friction where nowadays almost every service has limited public messaging and comments, etc., and online communities are fractured across dozens of Discord or Matrix servers. I think one of the main parts of Tiktok's success has been that it makes it easy to speak to new people either via public comments or video replies, etc.