The best selling/best graphics fidelity (imo) VR game Lone Echo has its own custom game engine.
You can pick out euler angles just as easily as calculating the quaternion by taking the basis vectors through the matrix and extracting it from there.
You had better checked whether representations are represented via spin groups (which can be represented via Clifford algebras). These work in every dimension in opposite to quaternions.
EDIT: And via pin groups (also representable via Clifford algebras), also reflections can be reprented (recall that the composition of two reflections is a rotation and any rotation can be represented this way).
Full abstraction over dimension is certainly interesting, but often not necessary.
Already the capability that is works both in 2D and in 3D is in my opinion reason enough.
Apollo 11 engineers made the same mistake. :)
Disclaimer: IANARS
Edit: I'm oversimplifying. There's no reason you can't use both. But if you're exclusively using matrices, then by definition you're not using quaternions.
what
I was consulting at a company that's developing a VR real estate app, and the first thing I did was check to see whether they were calculating their rotations with quaternions.
It was easy to do, I just looked straight up and then turned my head to the right. My view rotated to the left, and I almost vomited. I immediately ripped the headset off and said, "You're using euler angles to calculate rotations, you need to use quaternions."
I felt pretty good about finding the biggest flaw in their system in 3 seconds.