Time to apply the breaks, me thinks.
For a once in a lifetime event, just to say good bye, maybe. But. This sort of thing, could become an obsession, for some, if they had unlimited and uncontrolled access to such things. We already see displacement issues, with people who have lost children, or with those that can't have them. Cute pets, dolls and all manner of things, used and obsessed over, to replace such losses. I would say that most of us, know someone, doing this. From dressing up and having little beds, to having conversations, making the 'surrogate' a priority throughout the daily routines.
I didn't read all of the report, but I would say that it is a form of exploiting those grieving. Anyone can be sold the chance, to talk to a lost child, at a cost, but this is not a child, or even close. Just pixels, put together as the programmer, sees the child. The grieving process has many stages, all of which must be gone though, to move on. One of these is 'acceptance'. This process, gimmick, can only hold up and possibly, even reverse that process.