With the current level of technological progress that are avaliable to the masses, I see that the impact of physical location on our day to day lives diminishing very rapidly, and I think improvements in XR would accelerate that immensely.
Since I came to the US from Turkey 3 years ago, I've met some Turkish people who came to the US over varying periods. People who arrived before internet was widespread had trouble staying in contact with the motherland. Those who didn't have access to a community had to assimilate to the local culture, often going long periods without speaking Turkish that most speak the language with Amercanized accents. And if they had form a Turkish community, the comunity, similar to most immigrant communities, would preserve the version of the home they knew before leaving.
This certainly is not the case with people that have emigrated since 2000's. They are ussually caught up with current events and still immersed in the culture. I mean, I still watch most games of my favorite Turkish soccer team and call my father after each game, about half of all the Youtube videos I watch are in Turkish (this was the case when I was in Turkey as well), I talk to my family almost every day, and while it was hard to maintain all my friendships, I still talk to close friends from there. This level of contact would not be possible if not for our current technologies, this much is obvious. However, once XR as we imagine it has been adopted widely, my current level of contact would be more comparable to the level of contact in the 90's.
When I talk to my family, I still talk to them through a 2D screen. I can get their body language through a camera, but I don't really feel like I'm with them. I'm not sharing the same space. This puts a limit on our interactions, I'm talking to them, I'm not with them. XR would affect my friendships too. To me, the thought of having dinner over zoom with my friends feels depressing (unless it's 2020 and it's lockdown) but having dinner over a shared virtual space (where I can still see the table and my food in real life) seems very exiting. All of us could be in different countries, yet have a nice little dinner party. The switch from interacting through a 2D screen to interacting in 3D space expands the palette of virtual interaction exponentially, and brings it much closer to the real thing.
And this expansion wouldn't obviously stay with my family and friends. If I can have in person meetings, chats and discussions, without actually being in person, does it matter where I live? If I can share the same space with anyone in the world at any time, does it matter I live in NY or San Francisco? If every person I interact with lives in country A, and I am physically located in country B, what country do I live in?