Random Second Life facts -
Sweden has an embassy there.
There has been at least one anti-facist protest attended by hundreds.
Many authors (see Cory Doctorow of BoingBoing fame) have had book-readings and signings there.
The first second lifer to become a millionare in real life from their actions in second life is a mainland Chinese woman (I can't remember her name) who traded second-life real estate.
Real world media had conducted interviews (attended by other press and fans of the interview-ee) within second life. A famous incident of second life "terrorism" occured during one such interview with the real-estate millionare I mentioned previously. "Griefers" (in game slang for people who make in-game trouble) created some sort of replicating code which caused penises to multiply over the screen continuously until the server had to be re-set.
The exchange rate of linden dollars (second life currency) to "real money" is the fastest fluctuating and most erratic exchange rate in the world.
Various goverments are desperately trying to figure out they can legally tax people who earn linden dollars. The first to actually achieve this will most likely be South Korea or China as there have already been public debates about it.
I think that it's just a glorified forum with souped up avatars, but what the heck would I know