I always thought it's not necessary to go in details and explain what avatar is, what is the origin and the meaning of the word. People are using avatars not only in virtual worlds, they were introduced in web forums more than a decade ago. But, during Subcommittee on Telecommunications and the Internet hearing about virtual worlds, one of the representatives said:
It [avatar] is either a Hindy or Buddhist name for God, I don't know if you knew that, which always gives me some concern about virtual realities and how they are nice but they do portray things that aren't real and I don't think anybody percieve us as God.
Well, it might be better to sort some things out now.
Avatar is a Sanskrit word. It's commonly used in Hinduism, to denote a manifestation of a deity, a supreme being. In other words, when some deity has a biz to do on the Earth, it forms an avatar as a representative. Nice thing about eastern religions is that their concepts usually can be applied in the other cultures. So, if you are not so familiar with the myths of Vishnu's comings to the Earth, you can easily imagine Zeus forming as a white bull to mess with a mortal girl Europa, Jesus being an avatar of God and so on… Each time it is a higher being that manifests in the material world, using a carnal body and shape.

So, the use of the word avatar in the metaverse, be it flatworld or 3D environment, makes some sense. Now, it is humans that, wanting to manifest and operate in the virtual world, have to make themselves an adequate "vehicle". They are descending one step down the reality (please don't take this words too literally), in the form that is native to the "lower" environment and do what they do, be it saying something that will change the course of history, signing new testaments with human kind or messing with nymphs by the river.
Having an avatar doesn't make a human god nor goddess. Having an avatar is an opportunity to be in the digital environment, to manifest in a form different than the native one. As gods give life to their creations, our humans give life, imagination and feelings to us, the avatars. Praised they be :)

I wonder what will be next. In what form will the digital avatar seek to manifest itself?
Are there “ahumanist” avatars that do not believe in humans?
Fallen avatars?! Sure there is but I am not sure if they formulate it that way, but which ateist claims there is a god? :D
Avatar manifests in the next level, flatworld web, social networks etc. in the form of static (or couple of frames looped anim) gif. I guess…
Oh…
so I am not a sexy goddess anymore?
how sad :(
P.S.
I love the pic you took, and your writing style. :)
Thanks for the compliments. And don’t pay an attention to theological rumors ;)