It looks really cool, but I already hear my computer crying from the other side of the desk. Either it's going to be hell to render for the dev and their rig, or it will require a violent amount of computing power from each player. They look to be moving in real time, blinking and such, so I don't know how much you can just render a still or set them still in a pose. Then there is the thing that if the characters look so realistic, you can't very well use Daz3D for the background, you'd need to have custom modeled backgrounds OR use real pictures/video for it to not look super disjointed.
Either way, it will make computers cry, be it on the developers end or the players end. And think of the bandwidth the downloads would take.. IMO, this is kind of like thispersondoesnotexist.com, it's interesting, but exactly how and why will it be useful? And if you're going for realism, why not go the POV route of stuff like lifeselector but in VR? Where you actually walk into the house yourself, check the painting on the wall, then find the actual character you're going to fuck (this would need to be a real pornstar, so yay for the person paying the bills on this). At that point you can go with fleshlight integration..
Then you remember this forum is mostly single or duo developers doing it for 'fun and a bit of money' or 'money and a bit of fun'.
Conclusion: I'd love to see it, probably will never see it.