An interesting discussion from Thomas Frey at the DaVinci Institute on at which point our individual identity merges with that of our avatars:
With each generation of avatar, they will become more life-like, growing in realism, pressing the limits of autonomy as we become more and more reliant on them for experiencing the world. The avatar will become an extension of ourselves. The pain that we feel is the same pain that they feel, and vice versa. Like symbiotic twins separated only by a dimension or two, we are destined to become one with our avatars.
Karl Schroeder explores a similar notion of avatars becoming extensions of ourselves in Lady of Mazes.