This has been going on for quite a while (Score 4, Informative)

I remember seeing a report on this probably around 10 years ago. The technology was in its infancy but was being used to adjust people with a fear of heights. A link with information along these lines (found it in 2 seconds on google) is here:

Here

even the screencaps look the same as in the story I remember, and they appear to have the look of 10 year old renderings.