VR is the Wiimote of gaming.
I don't want to play standing up. I don't want to wave my arms and legs around. I don't want to have to turn my head around to see left and right.
So what does VR offer me? Nada. Not interested in the slightest.
Pretty much, want a sip of your drink, want to go for a quick slash or need to answer the phone or the door. It's just not convenient and as you say, the concept behind moving around being realistic is almost sensible but the reality is, you're not hitting someone, you're hitting air which isn't the same no matter how you dress it up. It's still not realistic, it's just tiring, weird, inconvenient and not realistic. When you accept something isn't realistic, then make the controls comfortable, sensible and easy/fun. Wiimote really wasn't that, it thought it was being realistic but it was just more annoying and not realistic.
In a holodeck... which pretty much everyone pictures as the end goal(and probably not achievable in our lifetimes) you wouldn't be waving your arm at air but at something real that could hit you back for real(but preferably without death). VR as described, a heatset with little screens, will never be that or close to it.
Redefine gaming, like 3d tv(in the mid 2000's) redefined cinema and home tv's... for about the 5th time. Much like VR headsets today like Nvidia's will redefine gaming, after dozens of other VR headsets from decades ago through to the other what 3-4 major ones being worked on today.
Even if VR had a chance, it needed to be an industry wide spec where everyone got together and made the best thing that, and everyone could add their own flourishes, fancier headphones with it, a better quality mic, a cup holder, a masturbation attachment, whatever. But a key set of industry standards for the screens that all game makers could adhere to.
The way it's heading, with 10 different headsets and game devs probably only supporting 1 or 2 of them(and different support for different games) it will become a joke where no game dev wants to bother supporting the headset you happened to buy.
So it's fundamentally not that good to begin with, in theory great, in reality not really, and even if it was good you would need the industry working to one goal, not everyone working to their own ends. Doomed before it started basically. This is why industry standards are good, everyone working on their own set means game devs don't provide universal support and everyone gets screwed.