I wonder if, instead of using this technology to catch pedophiles it might be used to treat them instead. If computer-generated avatars are good enough to provide sexual gratification, maybe that would be enough to redirect their attention away from real kids. There is some evidence that pornography can reduce the incidence of (adult-on-adult) rape, so it seems not entirely implausible that it might reduce pedophilic abuse as well.
[1] http://freakonomics.com/2011/08/04/porn-and-rape-the-debate-...