There's already plenty of thin, beautiful young women performing in smut videos and doing all kinds of degrading stuff, so I don't see why any particular CG puppet would catch on over any others. The "Tilly Norwood" avatar is attractive, sure, but is she more attractive than, say, these real amateur/small-time porn performers, who have real personalities, real quirks, and shag for real?
If anything, those who don't mind watching CG smut performers over real ones will probably want said avatars to be deepfakes of real celebrities, which obviously won't be monetized, so I doubt there'll be much dough to be made from it. And those who do get off on videos of women doing degrading stuff will probably always prefer videos of real women, because what's special about degrading an algorithm?
Also, anyone remember that 2014 chocolate commercial
featuring a CG Audrey Hepburn? It sparked a very similar alarm to what we're hearing over this Tilly Norwood business. But most people who had an opinion on the commercial disliked its use of Hepburn's likeness, and most people overall didn't notice or care. Turned out there was no actual benefit to fake-resurrecting a long-departed celebrity, so no one else has bothered to do so since, AFAIK.
I suspect this Tilly Norwood story will end much the same way. Many people will viscerally dislike anything the avatar is used in, many won't notice or care, and pretty much nobody will go out of their way to see whatever product
because of a CG avatar. And it'll turn out that hiring a real young and beautiful aspiring actress won't just be economical, it'll make better business sense, because she'll have an actual social media following, and it'll be a far better long-run bet on the off chance she does become famous, and the project gets retroactive recognition and play.
The primary CG danger to real performers is avatars taking the work of extras, which is probably inevitable. But nobody seeks out or buys a particular movie or show because of a background extra.