It's a new way to play the game.
Rol is somewhat right with his analysis but it's off on one key point, the "good enough" metric.
At some point, higher graphics stopped enticing new customers because graphics and immersion had reached a good enough point. After that came diminishing returns, so the small increases in immersion weren't enough.
However, this is a completely different kind of immersion, and opens the avenue to many new kinds of gameplay, or at least fresh experiences therein.
Those "trapped in a room" games where you can actually look underneath things and from different angles.
Ero-games
Actual leaning in shooters
Much more immersive open world style games
All kinds of puzzle games
It opens up a new kind of 3d element to gameplay.
That being said, yes, it will still be very niche from the start. The ambition though, is that it picks up software wise and adopted for many other kinds of products, like tourism, education, architecture, home decor, porn.
Imagine a game like pilotwings in vr? It would be awesome.
tl;dr: It's not a game changer, but it's certainly something completely different. It reminds me of the times when everyone was used to having buttons and stuff for gaming and then the DS came out and created fresh opportunities for new ideas and software,
