I think it makes houses/apartment less likely to sell. When you see the idealized version, and then the reality, the impact is much bigger then just showing reality.
Unless people prove me wrong, and they really fall for that...
Its like we used to be flooded with fisheye lens pictures of homes, that made the rooms way bigger then reality. I noticed that this trend (on the immo that i follow for years) has heavily reduced. Because nothing beats a sale, as people seeing something looking spacious on pictures and then in person seen its way more small/cramped/compact.
I love that new trend of 3D home viewing... It saves you so much time, and saves time for the immo people, filters out a lot of people with less interest.
When you do get the privilege of seeing the unit in person, yeah. This is obviously the case for most home sales.
But there are plenty of rental markets where you can be forced to rent without seeing that exact unit first. Common in big complexes, where you might get shown a "similar unit" or in markets where rental vacancy is so low that if you don't apply & sign within hours, you aren't getting that apartment because there's 20+ potential tenants for every rare vacancy. The current renal home I live in I rented without seeing it in person first because it was the only vacancy at the time, and in that market you must be first to sign the lease or you lose.