I think it is at the 'better off' section of Cambridge Cictionary:
Perhaps you'd be better off with a second life.
So, the meaning: the 'Second Life' virtual world could make the situation better temporarily, free you from the difficulties of real life (temporarily).
to be in a better http://dictionary.cambridge.org/search/british/direct/?q=situation, if or after something http://dictionary.cambridge.org/search/british/direct/?q=happens:
Your exposition wanders a bit, but I think you have the right idea.
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