That is technically impressive, Hassaan, and thanks for sharing.
One recommendation: I wouldn't have the demo avatar saying things like "really cool setup you have there, and a great view out of your window". At that point, it feels intrusive.
As for what I'd build... Mentors/instructors for learning. If you could hook up with a service like mathacademy, you'd win edtech. Maybe some creatures instead of human avatars would appeal to younger people.
There were some balloons coincidentally in the background of a colleague's camera view. The Carter volunteered "and can I just say, we need more positivity in the world, the balloons behind you give a good vibe." My colleague physically recoiled, pushed the camera away, and hung up.
I think it was a combination of the intrusiveness and the notion of a machine 1) projecting (incorrect) assumptions about her attitudes/intentions onto the environment's decor, and 2) passing judgment on her. That kind of comment would be kind of impolite between strangers, like the thing that only a bad boss would feel entitled say to an underling they didn't know very well.
Just an implementation detail, though, of course! I figure if you're able to evoke massive spookiness and subtle shades of social expectations like this, you must be onto something powerful.