I suspect this is going to get more and more common. I see ABBA is doing their reunion tour using “ABBatars” rather than them being on stage themselves. Although at least they did the original filming for the VR to be overlayed onto.
It hasn’t been something that’s interested me hugely but if you look at it as just an enhanced audio and visual experience, like seeing the ultimate movie of a concert, the it could be alright I think.
Along similar lines is this video Beck and Paul McCartney have done for their collaboration on Paul’s recent song off McCartney 3. It’s not Paul in the video of course, just some actor with a CGI overlay of Paul circa 1965.
https://youtu.be/t2Q4hAQ4fEw