Because 720p VR sure sounds like a delight. If Nintendo opted for a screen the likes of the PSVR OLED, it would be barely passable, the battery consumption difference wouldn't be that big unless you were running games at 1080p in handheld mode, though games rendered in 720p would look worse I guess.
But then you have to wonder, even if the Switch has near XBONE performance, it wouldn't be enough for VR. You'd have to render everything in 1080p twice and have everything highly detailed to provide the immersion. And Nintendo only has so many titles that would fit the bill for VR, and so do third parties. A majority of VR software out there are more like tech demos rather than full fledged games right now, and it will take some time for that to change.
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