[partlyFluked]

Its not exactly the same, as this is designed for compression, but there's an excerpt from Infinite Jest about the rise and fall of "videophony", wherein the users would get Video-Physiognmoic Dsyphoria which was just anxiety from having to suddenly be presentable in a previously audio-only interaction. The 'solution' if I recall correctly was the marketing of videophony specific make-up, followed by pre-make-upped latex masks, followed by beautified filters of the user, finally ending up at full 3D rendered perfect representations of the user that covered the camera and screen such that the only thing viewing the interaction was each others fake avatar.

[roywiggins]

One of Vernor Vinge's books has ultra-low-bandwidth videoconferences that are described in approximately the same way- the computer is passed the absolute minimum of data to try and generate an image that sort of approximates the interlocutor, and when the bitrate gets too low it can end up straight-up hallucinating.

[Vivtek]

"Welcome to the Slow Zone".

Fire Upon the Deep. One of my favorites.

[sp332]

In the movie Surrogates, people have physical robot bodies which they pilot through real-world interactions. The surrogate bodies can look like whatever you want. One poor guy has to go outside, and he gets severe social anxiety from people actually being able to look at him.