Oddly, I kind of agree with the original statement.
I think virtual worlds might obscure reality, especially as they become more immersive. I don't think it is too far outside of theoretical possibility that people may one day utilize a Matrix-like virtual reality. (The Matrix obviously being the movie that bought attention to a possible nature of reality and virtual reality.) If you didn't know a virtual reality (with no discernible differences from reality) was not reality, you would think it was reality.
Not to mention the possibility that one would choose to believe that the virtual was real because the virtual felt better than the real. (Ala Cypher in the Matrix.) Of course, people have held a variety of beliefs and retained a variety of behaviors in contrary to the reality of our world for millennium.
Of course, if you believe religion as Catholicism presents it (or indeed most of the Christian denominations), this life is merely a "virtual" reality that you occupy for a time before moving on to the "real" reality where you live for an eternity. (And the quality of your afterlife is predicated on your actions here.)
Perhaps the Pope has failed to heed his own advice.