Will the adaptation of this technology accelerate quality of life improvements, or will it be an opiate of the masses who would rather exist virtually than in the real world?
Could this remove political desire for rapid change?
No.
Things favelas need, in order of importance:
1. Jobs
2. Jobs
3. Jobs
4. Decent waste disposal
5. Decent public infrastructure - mass transit, daycare, health clinics, schools, etc.
6. Decent public services - police, postal office, social service workers, etc.
7. Etc
8. ...
...
Infinite - VR gear with SV technobabble, MMORPG, play-to-earn BS.
Source: I am Brazilian.
Another huge difference which can't be underestimated is the geopolitical importance of South Korea and the ensuing economic aid from the US.
Singapore also has uniquenesses (its location) that wouldn't translate well into other countries.
In no way does this diminish the merits of both those countries -- its great that they managed to develop so well, and they deserve applause for doing so. But I don't think we can easily compare either to Brazil.
No, since in the end you do have to return to the "real" world. Unless we can upload ourselves to the metaverse, a majority of humans will continue to want change in meatspace.
This both by means of propaganda through the content they consume, and by simply giving people something they can consider "good enough". Would people in micro-apartments be happy living in 32m^2 if they didn't have computers / TVs?