We all have a different experience of reality, even if differences are usually small. So the digital realm is an extension of reality. They aren't mutually exclusive. Ask any kid whose been cyber bullied.

Drugs alter ones perspective, so IMO a case can be made that they too are legitimate part of life. Dreaming too.

What people choose to do with the short time they exist is up to them. I hope my kids have a happy and fulfilling life, ideally giving as much as they take and leaving the world better than they found it. Yet it's not my place to dictate what sources of fulfillment are more or less legit, or even what 'better' looks like. (Of course I still teach them some fundamentals, to think critically, to make informed choices, and to try many things.)