Unless you have a green screen and proper lighting, my observation is that background replacement is often obvious and distracting. (Background blurring is somewhat better.) My observation is that, once people got over the novelty, many stopped using it.

Noticeable yes, but you get to display a nice full bookshelf behind you instead of your messy bedroom. You'll look smart.

Fortunately I have an office I was able to more or less stage manage. You're right that in a lot of circumstances virtual backgrounds will still be better than reality.