I agree insofar as forcing people to deny the observable reality around them is pretty dystopian.

But I would push back a little on the broader concept, in that we should have the right to selectively reveal ourselves to the world. In the same way we do with even basic constructs like clothing, or walls, doors, or curtains. They do to a certain extent create a distortion around us from the perspective of other people, but the alternative is far more dangerous imo. I think this applies to the cyber domain too.