You have just all reinvented world chat. Which was way cooler. I really liked that space station concept. It had goth lady avatars, bears, penguins. The late 90s were fun on-line. https://www.theguardian.com/technology/2021/may/08/work-can-virtual-meeting-spaces-save-us-all-from-zoom-fatigue
Pretty sure this is what I used. There were quite a few chat sites. https://en.m.wikipedia.org/wiki/Worlds_Chat
@onepict There still are. They are just mostly used by or directed to (pre-)teens.
