I think you are severely underestimating the current state of VR. It's still an enthusiasts market, to be sure, but it's well past the gimmick point, there are real applications, real content, and real consumer grade hardware out there. VR after the hype is real, just not selling like gangbusters.
I don't think your assessment of the VR industry is particularly sharp.
How is Oculus/Palmer any less guilty than Magic Leap? Give it 5 more years and I think we’ll call both initiatives a failure when compared against their promises.