Culturally, you could argue that the world became significantly virtualized with the widespread availability of television; in the States especially, we moved very quickly into a world where a lot of people's time was occupied by vicariously "experiencing" events in a simulated world. The internet actually seems like a step back towards reality in some ways, since at least the rest of you are more real than Archie Bunker (I think).
In the grand scheme of things, though, unless we're able to virtualize a whole lot of human biology, someone still has to clean the toilets. I think the only way it's possible for humanity to disappear into a complete virtual haze is if we manage to shove off *all* the maintenance of the world onto robots. That story has, of course, been written plenty of times.