That leads to plenty of interesting Asimov like thinking, except instead of AI and Robot, it would be us vs virtual us.
Also what happens with buffer copies, backup. How do you define being human at all ? Or even more basically the very concept of time become weird.
It is not necessary that a virtualised human would not have access to the external world. Maybe you can upload yourself, control animal, why not culturing special type of synthetic bodies for recreation ?
To me that does not look so bad at all, and there is definitively non-boring science-fiction material in there.