I’m not sure about suggestions but I was thinking about Juanita when you talked about wanting to look people in the eye. In snow crash she was obsessed with facial expressions and the need for just what you’re describing for real human experiences. Having said that though I also recommend anything by William Gibson in terms of VR/AR.
On the AR side of things, Rainbows End is a well conceived vision. I'd appreciate suggestions for other AR visions in science fiction (or otherwise).