Most definitely, I don't see any practical reasons why we can't rearrange biological bodies however we wish given the necessary technology.

I guess it's easier to have us migrate en masse to some kind of simulation than engineer a huge physical environment with all that entails - but, then again, given sufficient resources then why not?

Perhaps as technology improves even more it will become hard to tell the different what is physically real to what is a simulations of some sort - like waking up in a holodeck.