Climbly is good too but it's tough because you still have to move around with their locomotion technique and I find it quite vomit-y unfortunately the way it currently works.
Thrill of the Fight is on my list to check out this weekend... new release, looks great :)
If you'd like to either email me (email in my HN profile), reply here, or put up a post on the Steam forums (http://steamcommunity.com/app/488760/discussions/0/) I'd be more than happy to help you past that, as there's lots of good stuff beyond!
Climbey - yeah, the locomotion does get a little nausea-inducing :( I'm bulletproofed to it after months of VR development!
And please do! We'll get you on the path through the Well again...
(I'm actually the guy who coined the word "Machinima", with a colleague, because we needed a better way to describe what we did than "Quake Movie".)
So I had a lot of game engine experience before I jumped in.
As for beginners getting started: Unity, Unity, Unity. Grab Unity and start learning - you can get a simple VR experience going in a fairly minimal timeframe.
The Unity editor's very powerful, and you can extend it with tools like ProBuilder and Gaia, which are all available in the Unity Asset Store.
(I heartily recommend both of those for simple geometry creation and landscape creation, respectively.)
I've been coming at it the other way - I know game engine graphics and assembly like the back of my sinister hand, but I've been on a rapid C# learning curve :)
And when you call the graphics "terrible" do you mean they actually look bad to you from inside a VR headset, or just looking at the screenshot on some other device?
Because what looks amazing in a traditional game can look cartoony and fake within VR, and incredibly simple things can look startlingly real.
Also - there's a tendency towards flat shading as an aesthetic choice - it actually looks great in VR and frame rate is king.
However - check out something like Valve's "The Lab" to see how skilled devs can produce stunning graphics that run really smoothly in VR. It shows it's possible...
On reflection I don't think VR graphics are looking bad at all...
VR games are a lot of fun, but this is going to drive GPU development for a long time to come.
But I am also behind an escalation of the chipset manufacturers duelling it out. Some market impetus would surely bring about some great new engineering.
You might also enjoy Climbey (http://store.steampowered.com/app/520010/ ) - it doesn't look particularly physical at first but it uses a decent amount of slow muscle movement. I was surprised at how sore I was the morning after a long play session with it.
(Oh, and given you love Dark Souls - you have heard of Left-Hand Path ( http://store.steampowered.com/app/488760 ), which keeps getting described by users as "Dark Souls VR", right? If not, I seriously need to work on my marketing. It's also at least somewhat physical, particularly if you decide to use the dodging mechanics a lot. Full disclosure: I'm the developer of that one.)