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Supposing that the game isn't visually demanding, or that the screen displayed on the TV is simple, why not?

It all depends on the following. The image sent to Morpheus has to be at 1080p@60fps (interpolated to 120 using temporal reprojection). That still allows some sweet visuals, just looking at some 1080p@60 games on PS4 like MGS V, Metro LL and 2033, CoD AW and all the fighting games. Big problem here is pumping a different 1080p screen, but if you do some compromises in visual quality, it seems feasible.