what I've found from playing a lot of VR over time (was an oculus dk early adoptere waaay before they were acquired by facebook, then got a vive, then got an index) is that my brain is rather easily fooled even with cartoon graphics. the world reacting like I expect the world to react seems to be the major factor in whether the vr 'sells' itself, and is only tangentially related to graphics.

I do agree with you that the resolution is still to low to replace screens.