A standalone room like this makes perfect sense to my eight year old daughter, who's very much into Habbo hotel and the likes. It has less appeal to me, I'd rather take a walk in a virtual city, fly my Sopwith Camel over Caledon, or my Catalyst through Eve's virtual universe..
This does not mean I don't see any value in Google Lively, but I am perhaps not the kind of user that's attracted to this sort of thing. I think I'm going to spend more time on Twinity instead. See how their virtual Berlin is developing!