The AI assisted story ending sounds like it could end up mimicking TV scripts written to fit the time constraints, available actors in the show, and what gives the highest ratings.
Getting back to the body, manual operation of the body is required. The movement of the body can help stimulate the mind and the movement of the body helps to physically pump fluids around the body. Less movement is less pumping is less healthy.
The VR can't exercise your body but it does provide a view that keeps you occupied while riding a stationary bicycle or imagining you are working out in the middle of Times Square watching everything go by. The view supposedly promotes your desire to exercise. The views are rented on an hourly basis which might prompt you to get your money's worth. If you have a big enough TV screen you don't need the VR to imagine you are there.
Couple the AI story writing to AI for a complete package an we're on our way to Total Recall.
I guess you could have the option of running on a treadmill with a pack of zombies chasing you, that might make the exercise more vigorous if you saw fellow runners getting taken away by zombies. Make the rock climbing on the peg board cliff on the side of your house look like the real thing complete with thousand foot drop.
Once it gets less awkward to use VR, you could go to a big empty room with ramps and platforms and go anywhere with the actual movement of your body moving through 3 dimensional space. The new arenas will be completely empty buildings. A mall with nothing in it. You are walking around with other people in an empty building going to a different place every night. To offset the couch potato mode it could have an option like the carrot and the stick so the more you move around the better the VR experience feels. With money being the driving force, it's probably the more you pay the better it looks in the virtual world. 1960's Star Trek vs The Expanse. There was probably more on the old sets in those days than what is physically there now. I'd rather have the physical set to move through, where you could stub your toe for real.
Eventually it will get to the point where you can wear a form fitting suit filled with electrodes and sensors when you are sleeping that stimulates the muscles into acting like they are moving so you can exercise while sleeping.