Just a little background on myself.. I run a virtual world business. Skidz Partz in second life, and while.. I understand all the laughter and criticisms, I have made my living from it making tools other gadgets. So I guess I am one out of the ten.
One of the reason 9 out of 10 businesses fail in virtual worlds, is they are so easy to start. Its nothing to buy land (rent server space) and set up shop. You don't even have to have a product of your own. The hard part, is taking it seriously, customer support, having events and such.
The second reason is most people open the store and think its like a web page, place things for sale and people buy.. completely automated.. no work at all.. I find, in virtual worlds the community factor is something that those 9 don't take into consideration. When coke put up there sim, it was empty of anyone that works there. People come to virtual worlds to communicate, explore, and create, and it defeats the whole purpose of the virtual world not to have a staff on hand to communicate and reach out to the audience.
And, as far as the fancy ligth show, and physics, I would agree that the core business user of a virtual world would not care about those things, but I believe the base users do. They want a great experience with great graphics. Most people that come into second life just want to escape reality for a bit, roll play, chat with friends and those thing add to the experience. And if you have not seen the wind light version of secondlife, I recommend you take a look, its stunning.
And now time to defend virtual worlds a bit... Last night I was searching the net high and low for a mathematical solution, but could not find it anywhere. I join the mathematics group in second life and had the answer I was looking for in just seconds. This is a great example of how the community is very powerful function in virtual worlds. In the future, I do believe virtual worlds will increase in popularity. I know IBM, Google, and Second life are working together now on something even bigger and better. While, right now, I would never suggest using second life as a work at home but in a virtual office, with the price of gas I believe something like that will become even more popular or more likely in the future.
Well.. just my 2 cents.