I saw this video too. It looks really amazing. It will be nice for business meetings. Gamers are sure to prefer avatars though. I wonder if it would be possible to crop out the rift from the video. Maybe splice in a big pair of sunglasses or something.
eventually just map your body, like how they did golem in lord of the rings, or the apes in the new planet of the apes movie, you can make yourself anything/size you want to be and it just uses you for the skeletal joints
right now it's possible, but too laggy, when/if cpu speeds get fast enough and latency gets better, seems to me that's the easiest way...