The government has more advanced tech than the public. What we normally consider v-tubing is only a fraction of what's possible.
Metaphysic demonstrates their technology on America's Got Talent:
Other demonstrations of this technology:
https://www.youtube.com/watch?v=1QA_mfhLvq0
https://www.youtube.com/watch?v=Jr8yEgu7sHU
After seeing that, I question whether or not the person who recently gave an address from the Oval Office was actually Joe Biden:
Welcome to the future motherfuckers!
I doubt this'll affect vtubing as that's all about the fantasy so people would rather debate who's better, cat, rabbit or wolf girl than have people turn into some real life person.
The more serious angle is them using it to replace their senile puppets in public announcements and in ab entertainment 'we own you completely' way from now on.
Why not a photo realistic cat girl?
I feel like that might be too much in the uncanny valley that it'd be uncomfortable for viewers.
Let give the example of robots, there was a Japanese researcher that made a completely life like robot copy of himself. He wanted to study if humans would prefer robots looking EXACTLY like them or if they want something distinctly different from themselves but could still empathise with.
Feel like it's the same with Vtubers if they tried to make photo realistic monster/animal girl avatars.