A laser-hatchet hand and a disembodied floating mecha-claw that respond snappily are ultimately more real than a "realistic" arm that moves like a cartoon.
For yourself you do not want to show body parts that cannot be tracked correctly because of the jarring effect of the mismatch, as you say. But for showing other people you can get away with more, so for example you can show full arms even if the elbows are not exactly in the right place (as long as they are not unphysical of course.)
> I remember trying a vive game that had arms but sometimes they would contort into impossible poses and it was extremely jarring [.....] the visible hands on the touch controllers on rift is just fantastic.
Neither of the things mentioned here are specific to Vive or Rift.
A Rift game can give you arms that contort into impossible poses, just like a Vive game can give you visible hands. It's just software and whatever the author of whatever game you're playing decided to do.
Did you play a game worked in both Vive and Rift, and the versions were different or something?
1: https://upload.wikimedia.org/wikipedia/commons/d/d8/Oculus-R...
Having spent many hours in both vive and rift, while I prefer vive in general, the visible hands on the touch controllers on rift is just fantastic.