The DK2 totally had those issues and the PSVR is a sub standard experience but hey each to his own I guess.
However, when anything glitched (frame drops, tracking errors, etc.), I'd get sick. Even worse, any game with artificial motion (such as walking with the trackpad), would make me SUPER sick very fast. Teleporting was generally OK, but still not great.
I say this as someone that thinks VR will be a huge success, but it's definitely still early.
Unlike OP, I think gen 2 alone is going to make huge strides in making VR closer to mainstream.
I don't think there is any sort of "advances" that can prevent some people from being uncomfortable with "virtual" motion. It is unnatural and that's not going to change.
A great application could accelerate that.
My favorit way to think about this is DooM from -93. It had tons of tech limitations but dint stop me and other geeks from enjoying it. Today FPS games are several magnitudes more advanced, and accessible for the average joe in his couch.
That's kind of the whole point isn't it?
I want to be immersed an isolated while I'm experiencing VR.
I don't think VR will really take off until it gets to the sunglasses form-factor phase.