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Does Avatar represent the future of movies? Maybe not
The opportunity for focused web 3D apps is looking good, whether it be pets, casual mmo (some interesting things coming out of korea), education, fashion (what we're building with frenzoo) or action games (instantaction)...
Lively I think is going to big impact on existing 2D avatar communities on the web like Habbo, although those with their own flavour or niche will continue to do well, eg- Stardoll and maybe Gaia.
It will certainly help mainstream acceptance and the acceleration from 2D to 3D offerings...
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