I can see VR films being entirely CGI, like UP and other Pixar titles. Eventually, with real time rendering I can see it being a hybrid of how games on rails (HL2 etc) marry up with filmic story telling. With CGI getting to the point where a rendered human is getting close to being generally pretty close to the real thing it may be that it starts to get easier to believe they're real.
I reckon there will be some films that will have massive emotional impact in the future, almost being part of the film as a silent character or maybe even have some input with voice recognition to shape the story in small ways. Characters can react to you in small ways without derailing the overall experience, pulling you in further.
It's going to be cool though whatever happens
Further to entertainment, VR will be everywhere. Education especially, being able to teach kids about all sorts of things in an interactive and interesting way is going to accelerate learning immensely. Surgeons able to practice at home the night before a big operation in their living rooms with a VR patient is just one tiny example of the future.
Even just being able to have every toy in the world available to play with. Building the craziest scaletrix with every piece and custom pieces too will be fun. Then racing against a friend from overseas.
Learner drivers can practice at home with any car they wish in various scenarios. Along with being able to practice changing a tyre with instructions before doing it on your real car, having a virtual engine bay with highlighted parts to help you maintain your car with virtual oil to pour etc. The list is endless!

A lot of these examples sound like the sort of ideas that seem nice enough but in practice aren't very helpful, VR changes that.