Yeah, the idea of having a world where everybody can choose their own reality is terrifying. It's already going that way with the way news stories are personalized to your own preferences. Imagine your Facebook news feed, presented as literally indistinguishable from reality.
People who are right leaning get a reality with more likable white people, more violent minorities. People who are left leaning get a reality full of violent racist gun toting rednecks.
People have a hard enough time separating perceptions they are predisposed to agree with from reality when it ISN'T VR.
That's what it'd really be like. The emotional tilt of our Facebook feeds, in a way that looks and feels exactly like real life.
I was thinking of people being plugged in 24/7. That means it doesn't matter if you have terrible people also inside because they couldn't hurt anyone. What kind of world they create in their own personal holodeck is their business. It won't effect anyone else because the program would be created with means of stopping violence.
I also think though this would be stuff only the first group of people would deal with. Eventually society would change so much that the factors that create racism and violence would almost be erased. Creating a world were the main issues of this society would be those dealing with questions of individual rights and privacy and even questions as to what it means to be alive. Still a upgrade over the present day because you wouldn't have to worry about war,gun shootings,sexual crimes etc.
I could for example see a issue rising up about dupulicating lost loved ones. Something that people would actually discuss with each other before a person dies so it wouldn't be as glaring as someone bringing their dead parent back to life on a wim. Also the ability to alter yourself. If you can mask physical pain it means you could alter your emotions on a dime. Think your getting angry. Just trigger something and you get a increase in endorphins. Maybe most people would go through life as if they are constantly high.
Jason