No, I don't think it's a fad.
I see VR as becoming viewed as a whole new medium in 5-10 years time. It isn't just gaming but film, software, simulation (training for pilots, drivers of specialist vehicles etc.) and communication. There really are a whole range of possibilities beyond just gaming. The ability to literally see through someone else's eyes in film for instance will allow people to sympathise with characters in ways that are simply impossible today.
As for gaming, I see the first gen devices as barely scratching the surface. It'll be more exciting when we get games that are made specifically with VR capabilities in mind. I've seen a game being made where a morally gray choice is presented but instead of a conversation choice, the player has to interact with the environment and see the full consequences occur as they fulfil the actions. As devs and film makers get used to the new medium, we'll really see it shine.
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