Looks like the military/corporation is using avatars to fight the blue man group. However, if you have a high end genetics lab, why not create a genetically enhanced avatar that's even better than a blue smurf person? (Like a giant Predator!)
Why with all their futuristic innovation could they not give Sully some legs to begin with? You can clone a blue dude, but you can't make a Sully walk? Shenanigans!