I asked this question on IRC before and got some surprising answers.
Suppose, for the sake of argument, you get cryo-preserved and eventually wake up as an upload. Maybe meat->sim transfer ends up being much easier than sim->meat or meat->meat, or something. Further suppose that you are not particularly averse to a digital-only existence, at least not enough to specifically prohibit reviving you if this is the only option. Yet further suppose that sim-you is identical to meat-you for all purposes that meat-you cared about (including all your hidden desires and character faults). Let's also preemptively assume that any other attempts to fight this hypothetical have been satisfactorily resolved, just to get this out of the way.
Now, in the "real world", or at least in the simulation level we are at, there is no evidence that telepathy of any kind exists or is even possible. However, in the sim-world there is no technological reason it cannot be implemented in some way, for just thoughts, or just feelings, or both. There is a lot to be said for having this kind of connection between people (or sims). It gets rid of or marginalizes deception, status games, mis-communication-based biases and fallacies. On the other hand, your privacy disappears completely and so do any advantages over others the meat-you might want to retain in the digital world. And what you perceive as your faults are out there for everyone to see and feel.
As a new upload, you are informed that many "people" decided to get integrated into the telepathic society and appear to be happy about it, with few, if any, defections. There is also the group of those who opted out, and it looks basically like your "normal" mundane human society. There is only a limited and strictly monitored interaction between the two worlds to prevent exploitation/manipulation.
Would you choose to get fully integrated or stay as human-like as possible? Feel free to suggest any other alternative (suicide, start a partially integrated society, etc.).
P.S. This topic has been rather extensively covered in science fiction, but I could not find a quality online discussion anywhere.
A lot of the discussion in both the original post and the comments seems to be stuck in '21st century' (present day social) mindsets.
Firstly, the idea of there being only one or two societies for people to participate in seems highly unlikely in a simulation environment. Computation of the mind is much more complex than computation of the environment, meaning it's difficult to foresee a reason why engineers in charge of the 'sim' would limit the number of environments to anything less than whatever the individuals decide to dream up.
Of course it's likely that over time certain environments (IE 'planets' or 'spaceships' or whatever scenery/location/laws of physics) will be appealing to a large number of people, leading them to become much more popular and almost like a 'real life' for members who spend much of their life there.
Assuming that two of the most popular of these environments were 'telepath' and 'non-telepath' mirrored versions of reality, then it's true that many members would spend time deciding which of these societies to spend time with.
This decision is much less finalistic than earth decisions, however. If a person get's sick of one of these, they could, presumably switch into the other environment with very little effort.
I believe you would see a bit of a split between those who enjoy the more 'primitive' enjoyments in life, who would choose to go with non-telepath, and those with a more spiritual/philosophical interest who would be more likely to start on the telepath route.
Sports, competition, games, sex, many other recreational activities are, one would imagine, more fun in a non-telepath environment. However, I couldn't imagine the incredible rush of knowledge, wisdom and compassion that would come with being able to hear everyone's thoughts.
To a degree, one could assume a telepath society to be calm, happy, esoteric, and relatively laid back. Since everyone has dark secrets and nasty character flaws, only those with enough courage to lay bare their darkest secrets, and enough wisdom not to judge others would be able to enjoy a true uncensored mental link with someone else.
There is a middle ground, however, that I believe is most likely.
In a simulation environment:
One could easily imagine a scenario where the most popular 'reality' would be something like:
Clone of real earth except:
I assume sex would be more fun in a telepathic environment, and likewise for dancing and making music. Competition probably wouldn't work.
I'd be delighted for Neo-Nazis to have their own virtual environment, with nothing to kill but NPCs, at least so long as I could trust they'd stay there.