In the book Calculating God, a character notes that this is a common civilization-wide choice. Living in virtual reality, rather than trying to expand into the vast expanses of space, is a common trope as much as it's a logical choice. It neatly explains the Fermi Paradox. In some fiction, like The Matrix, the choice might be forced due to cultural shifts, but the outcome is the same. A relatively sterile low-energy state civilization doing pure processing.
True. But it's not a binary choice. All it takes is to make one sub-optmial choice for the universe to be filled up with von-neuman probes in all star systems