There's been a lot of motorsport sim racing going on during lockdown, and while I've not been watching it, it seems like they're definitely shying away from the 'arcade' style and trying to make things as simulation as possible. The arcade style might be more fun to pick up and play (opinions vary, as sims can be more rewarding because of the more 'authentic' experience) but the simulation offers a more 'real' viewing experience. While Zwift type events do offer at least some real senses in terms of that you're turning wheels and people can get an idea of your power, endurance and W/kg (notwithstanding that there are myriad examples of these being fudged), things like power-ups are just toys, and while they might be a bit of a laugh for the pros, it only serves to emphasise the message that this is not to be taken seriously and it also means that it's harder to ascribe a value to the comparison of one's performance to the pros than it is in, say, iRacing. There have been a few different platforms that have attracted a lot of different drivers from different formats of the sport, and specialist sim racers. As far as I am aware, none have been in MarioKart, Wipeout or similar style games.
These are difficult times to strike a balance in, I get that. If some of the events like the virtual RVV were considered too dry, they want to liven up the broadcast, but at the same time you have to ask the question: who are they aiming it at? As a televisual spectacle it's unlikely to take off any more than any other e-sport once real sport recommences, so, who is it for?
If it's for the existing cycling fanbase, then those people don't need powerups and wizardry to enliven proceedings (even those that like the Hammer Series); if they're interested enough in cycling to be watching bike racing then they already understand the technicalities of a race and the game-like elements take them out of the immersion, which as you can see from this thread is accepted as fun enough by some, but off-putting and a turn-off to others.
If it's for the casual, or potential, cycling fanbase, I feel it's probably a swing-and-a-miss as if you're introducing factors that don't exist in real cycling to attract fans, they'll be disappointed when they tune in to a real race (especially if it's an early TDF flat stage with 4 hours of nothing broadcast!!!) and see a completely different spectacle with various nuances they have to now learn. Obviously nobody expects invisibility and breakaway burritos to be part of a real race, but if you need that kind of thing to enjoy a bike race, then the sport clearly isn't for you.
If it's to amuse the riders to encourage them to take part (or to encourage their sponsors to think it's worth forcing them to take part, at least, although the sponsors are more likely to believe the 'shorten everything for young people with no attention span' spiel and not need the amusing side-show stuff), then cool, but then you're being constantly made aware that you're essentially watching other people play a game. Which has a pretty sizable niche audience with competitive speedrunners and the like, but has limited value above and beyond that.
I wonder if the idea is to make this into an amusing side attraction for riders in the hope of running some of these through off-seasons in future. I think given the popularity of CX, crossover with other sports and the likelihood that most riders will be doing warm weather training outdoors in places like Mallorca, Tenerife and so on will limit this potential unless they offer substantial enticement to compete, while the issue of late season showing your old sponsor if you're moving team and so on might be a factor. But might it also be another roll of the dice for elite sin contrato riders? Or will it be just seen as competitive computer gaming and a one-off thing to entertain some bored housebound pros in a unique situation, and disappear as soon as people can ride real bikes and watch real bike races again?