I recommend the Otherland books by Tad Williams for those who are interested in VR.
I think VR has a long way to go until we see the likes of a Holodeck, but I think it is possible. As others have mentioned, everything is fiction until it is created. To Napoleon, a fleet of modern destroyers was fiction, fighter jets and civil aircraft were fiction, space flight was fiction and so was a lot of other technology we now take for granted. That is a mere 250 years of development. In another 250 years, where will we be? Hard to say, but I think it is likely we will have cracked several key areas of technology by then (unless we are wiped out by disease/global killing event).
But I believe there are several boundaries to our development - Ethics, energy/power sources/storage and raw materials. However I think these things will only delay progress not halt it completely. It may be that to fully realise some technological ambitions we need to expand our borders beyond this planet. However I fully believe as a species we are capable of achieving amazing things.
I think VR will be limited by design. Effectively it has the potential to be a mind altering activity and would therefore be legally controlled. A little bit like Inception where a person is never quite sure if things are real or not would be seen as a massive threat to public safety. When you add in the unknown element of how the mind and psyche would cope with such things it starts to become clear that the progress of VR whilst exciting is potentially also very dangerous and for that reason I can see it being heavily controlled/regulated should it ever develop into more than wearing a headset to play games. Reality is the cornerstone of our perception, and our moral and social conduct. If we blur those lines to a degree where the difference between actual realiy and virtual reality becomes hard to see we are potentially creating a very big problem. True - I think that level of VR is waaaaay off, but we are certainly sowing the seeds with the current development.