I'm still waiting on the future waves of PTSD from hyper realistic horror games. I can't think of a worse thing to do then hand a kid a VR headset (or game system) and have them play a game that is designed to activate every single fight or flight nerve in the body on a level that is almost indistinguishable from reality. 20 years ago that would have been the plot to a torture porn flick.
Even worse than that is when people get USED to it and no longer have a natural aversion to horrific scenes taking place in the real world.
This AI stuff accelerates that process of illusion but in every possible direction at once.
As much as people don't want to believe it, by beholding we are indeed changed.
That argument can and probably was pointed towards movies with color, movies with audio before that, comics, movies without audio, books, etc.
I don’t think that slippery slope holds up.
IIRC there’s pretty solid research showing that even children beyond the age of 8 can tell the difference between fiction and reality.