Don't room scale VR systems, like the Vive, avoid this problem? They (usually) avoid having any artificial movement at all, mapping you walking around in your room 1:1 to walking in the virtual environment.

...which is one reason why VR won't live up to the hype.

You won't be piloting the Millennium Falcon, you will be sitting in the back room, playing Holo-Chess against Chewbacca.

That may be interesting enough to some people, but it's not going to "change the world".

Yeah, but you're limited to a very small play area. Some slow-moving games get around this beautifully using teleportation (Budget Cuts is a great example), but it doesn't work in all cases. Wouldn't want to teleport my way around Fallout 4. The developers are trying different tricks to make it work, really hope they come up with something because the potential is great, but as it stands my Vive has been collecting dust for the past months.

It's not as simple as that, individuals have very different sensibilities regarding simulator sickness and lack of inertia is just one (presumed) cause of it. There are studies that suggest "virtual cockpits" or even a "virtual nose" can help here.

However, it's clear that right now everybody is trying to "play it safe" regarding movement in VR and this is quite limiting to the possible experiences. Marketing towards the segment of that population that doesn't get simulator sickness is unthinkable.