To transcend means to "go beyond," but this need not compel us to an ornate dualist view that regards transcendent levels of reality (e.g., the spiritual level) to be not of this world. We can "go beyond" the "ordinary" powers of the material world through the power of patterns. Rather than a materialist, I would prefer to consider myself a "patternist." It's through the emergent powers of the pattern that we transcend.
By the end of this decade, computers will disappear as distinct physical objects, with displays built in our eyeglasses, and electronics woven in our clothing, providing full-immersion visual virtual reality.
Our intuition about the future is linear. But the reality of information technology is exponential, and that makes a profound difference. If I take 30 steps linearly, I get to 30. If I take 30 steps exponentially, I get to a billion.
My view is that consciousness, the seat of "personalness," is the ultimate reality, and is also scientifically impenetrable. In other words, there is no scientific test one can postulate that would definitively prove its existence in another entity. We assume that other biological human persons, at least those who are at least acting conscious, are indeed conscious. But this too is an assumption, and this shared human consensus breaks down when we go beyond human experience (e.g., the debate on animal consciousness, and by extension animal rights).
The telephone is virtual reality in that you can meet with someone as if you are together, at least for the auditory sense.