Running through this years Furality dealers den really highlighted to me how isolating the "Try On Avatar" function is with marketplace avatars.
Felt like shopping for a shirt with friends, but none of them can actually see the shirt you want their opinion on. I noticed an anecdotal trend of us moving on from booths that only had marketplace avatars much quicker seemingly due to this. Several people in the group at one point or another (including me) made comments along the lines of "ah they are all try on".
Feel like there should be some limited context where try on avatar also shows you in that avatar to other players. I think for many, the experience of being perceived as that avatar is just as important as perceiving themselves as that avatar. Comments from other people along the lines of "oh, that avatar really fits you" similar to trying on clothing have definitely lead to me making avatar purchases or taking an avatar more seriously as an option in the past.
Maybe a refreshing time limit? Only visible to other people also trying on avatar? Visible to others in a small range from where you first swapped? Even better if stuff like this was configurable to the avatar author.
In general (as a slight side tangent to hopefully better show the problem) I think there is a disconnect between the try on system and what trying on really means in the context of an avatar. Booth bases for example, have a thriving ecosystem of public "sample" avatars with advertising placards put out by their authors. Without being able to try out a sample for a few days, I likely would not have purchased my first or subsequent booth avatars.
On the contrary, the current "try on avatar" system directly encourages/enforces spending as little time in an avatar as possible due to the disconnect between what you and other people see, disabling the try on avatar when changing worlds, and not letting you favorite the try on avatar.