Its interesting to note the text addresses “issues of design” and “in the future it will allow us to understand how things will be under different conditions.” – but the images presented seem (on the surface) designed as simple simulations.

Are there better example images of what’s possible – or hints at the authors design approach?
Would love a pictorial update to this article.

As a side note, there’s 20+ years of interesting work that’s been done.
My favorites include:
http://pin-upspot.blogspot.com/2007/10/guggenheim-virtual-museum-images.html
http://www.fabric.ch/La_Fabrique/

Also, on a theory and language side, there’s a host of interesting parallels to virtual worlds and early cinema (who’s goal was an immersive “total cinema”, not narrative storytelling.) What’s emerging (slowly) now seems to be a language of editing reality – not for narrative, but for interaction.