Second Life can definitely be used for advertising. If an advertiser wants to target that particular audience, they know exactly where to go. Advertising in games is not uncommon. Video games have increasingly more advertising and product placement and brand alignments these days. Lord knows how much more that will increase. Even Barack Obama's presidential campaign placed advertising in EA Games in 2008!
There is a darker side coming to light with users of Second Life-like gaming. There have been published reports from CNN breaking news of "rape games" like Second Life. Virtually reality wolds where users take advantage of innocent "characters". Horrible-i know. I guess there's no way of keeping things wholesome these days.
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