http://www.flickr.com/photos/blazingdaze/1418434432/
I wonder if just the imagery of having a class in an informal, relaxing place (such as a beach) would help students feel more comfortable with each other and more willing to ask questions and make comments. The downfall of virtual environments like Second Life may always be that there are plenty of distractions to keep one from paying attention, but it's not like anyone has to be in class. If someone's not willing to focus and participate, the can just teleport their little avatar to another island. Perhaps as we get over the newness of technologies like Second Life, the desire to run around exploring things like crazy will die down.
In the 'real' world, I have taught classes online from the beach, Carova Beach, in the northeast corner of North Carolina and southeast corner of Virginia (on the NC/VA state lines). Although it worked well for me (as the teacher), I'm not sure how well it would work if I was the student (beach/relaxation mentality). With all that I am studying about with second life-learning, however, the concept of attending class online at your virtual beach, could certainly work for me as a student or as the teacher.
One thing I know for sure is that if we, as college professors, want to keep our students challenged...then we must rethink the old traditional ways of doing so and that may mean no more face-to-face class meetings.
Thank you for expressing your ideas and doing so in an amazing virtual beach setting. It certainly is something to consider!