I would say it is failing and its time for the industry to take a serious look at it than a romanticised one - it is not capturing the imagination or hearts of most mainstream consumers and while many are impressed when introduced to it very few have any interest or intention of purchasing a system themselves, its not far off being as big a turkey in respect of consumer purchasing interest in that respect as curved TVs.
I think part of the problem is unrealistic expectations in terms of popular uptake trying to force it as the next big thing just isn't working - the convenience and interface, etc. just isn't there yet to capture a mainstream audience no matter how hard people both industry and enthusiasts see it or try to push it.
Unfortunately I think you are likely wrong on that - based on my reckoning of the tech and software progress required it is closer to 10 years than 2-3 and infact the way the industry has invested into and hence pushing it possibly going to do more damage than good in the short term and actually delay it (i.e. making other investors cautious, etc.).
EDIT: I wonder how a game like city of heroes would work in VR - generally on rails movement in a game like that can be kind of disconcerting but the way the game is (was as it has been shutdown
) I think click to move would work in that environment and much of the gameplay could be adapted to work well in VR.
