Read Mayfly by Peter Watts, one of my favorite hard sf short stories that deals with a child being raised in a computer, sorta.
Also, here's the article in question in question. It's written as a sort of joke about the supposedly serious article on the same topic in daily mail which I haven't read yet.
Waking up in a cold sweat after the first 45 minutes of sleep ive been able to get for 2 days. i grab my oculus from where it sits in the crib next to my bed. i put it on in a panic. Oh thank god, my baby who ive modded to look like Shrek is still breathing