That is an interesting point.
My feeling is this;
If your virtual environment lets you live a different life to your own, then it is a game.
If your virtual environment lets you live aspects of your current life, then it is a tool.
I think Meta is trying to make a tool. A place to meet friends. A place to have meetings. A place to do interesting stuff.
I also think people want escape. They want game space. They'll want avatars that are not how they currently look. To me that is edging into game space.
I think the Zuck and his Meta dream is a bit loose in his head. I don't think he really knows what he is trying to do.
In the end though it will be the market that decides.