The second part, as it were, answers the first - developments in the field of virtual reality. As for the second part - no, it will not replace, just art will move to virtual reality. Together with people.
In the next 20 years, breakthroughs in genetic engineering, robotics and artificial intelligence may occur (and where there is investment and fertile soil, they are already taking place). I think that the most significant impact will be the CRISPR genome editing technology, which, in addition to more hysterical than reasonable fears, promises big and qualitative changes. Read more for yourself.
Virtual reality is interesting because it will allow us to create interfaces that are intuitive for our brain to work with (or maybe not). Some of the NASA laboratories seem to have already used VR to study the surface of Mars. Technology is developing and it is very interesting to watch it.
As for art, the question itself is incorrect. You have succumbed to false opposition. Art cannot be replaced by anything. Virtual reality will join the ranks of the arts, like other technologies before it.