I had a chance to glance through Mark Bell's blog for a bit. He has some interesting thoughts on VE and on identity. One statement he makes is that the name a person chooses as a "display name" is important to examine in relation to identity. Bell then states that some people view this as a "throw away" name. (sorry, no exact quotes and my system is too slow for me to go find it right now). We talked briefly about the importance of choosing a name you can live with for SL because it cannot be changed. Does the choice become more identifying when you know you'll be "stuck" with it.
Also, he mentions the choice of Avatar is related to the idealized version of self. Therefore, I wonder if the physical appearence of an avatar is the representation of an idealized version, then is the personality of an avatar also idealized - the way you would want your personality to be? It has interesting implications for griefers, doesn't it?