Second Life is an interesting concept, but for all intents and purposes it's a graphical chat room you pay for. It never intrigued me enough to try it, despite all the drama, and some of the technologies people have invented for it like the whole "Destroy TV" thing.
When it comes to MMORPGs, I guess it all depends on what your into. People who get addicted to things like this are people who have a desperate need to escape from their lives to begin with. It does not cause people to fail, but generally speaking allows people to escape from unhappiness. Something important to consider.
Understand that in first world nations like the US people are increasingly becoming disenchanted with the real world grind that is life. People tell you that your special, and then you wind up in what amounts to a 9-5 job and if your lucky after decades of work you'll peak as middle management. College degrees are just pieces of paper since nearly everyone has one (they don't open doors, they prevent them from being closed), and if your a Generation Xer, you had even less oppertunities due to the Baby Boomers not retiring, and modern medical technology even bringing senior citizens out of retirement to compete for what jobs are out there. People are drugging themselves to the gills as a result to deal with things like depression, anxiety, and stress.
Kids who fail school because of MMORPGs and the like are those who tend to prioritize this kind of thing over school because I think they are increasingly realizing that in the current climate (and what will exist for the forseeable future) there is little point. For all talk about comparitive educational levels, if your going to be locked into a cubicle, or performing meniel labour for your entire life no matter what you do, what differance does it make if you score an "A" on an algebra test. By the time you get to Jr. High or High School the testing that decides your entire life has already happened, if your not in a genius program your pretty much destinied for a rut.
Generally speaking those happy with their lives do not seek escapism and "don't get it" when it comes to MMORPGs and other forms of powerful escapism. For the rest of the people, well it doesn't take a self diagnosed aspie to really take a "I don't give a shit" attitude in this enviroment.
The lure of getting together with a bunch of people who also play regularly and do heroic things like killing internet dragons in a fantasy world is strong. However it's no more entrancing than all those who have been "seduced" by rock and roll and heavy metal, comic books, or whatever else. It's just the current "boogieman" to blame societal problems on, and if MMORPGs were stopped, they would find something else to blame things on. Instead of a kid getting hooked on "World Of Warcraft" parents would go back to how Junior is failing school due to the fact that he locks himself in his room and listens to that "devil music" non stop instead of studying or whatever.
Any specific analysis of MMORPGs and what makes them addictive is kind of pointless no matter how official they seem, because it's just a new face of something that has been around probably as long as modern civilization. As the current society becomes more and more depressed, and youth (along with adults) lose more and more hope, we're going to see more of this. Along with the shattered dreams of parents who get depressed when they realize their kids are stuck in the same rut they are, but realized it quicker, and won't surpasss them, and adults who see shrinks and drug themselves up due to constant depression after realizing they will never do anything impressive like they were told they could, and that their job digging ditches, working as a manicurist, filing paperwork, or whatever is pretty much all they can look forward too... well maybe some might aspire to low-middle management positions but that's hardly becoming a Doctor, Lawyer, or Astronaut. How many kids in school ever have realistic ambitions when asked what they want to be when they grow up? How many of them are given a reality check about life?
