The first time (I am aware of) people experimenting with immersive computing experience was in the nineties CAVE @ ncsa [1]. It has not really taken off and I don't think its down to device specifics.

It is possible that there is a non-linear threshold type thing (Like LLM's requiring billions of parameters before doing a decent imitation of human language) that has prevented (thus far) making this technology really interesting.

[1] http://www.visbox.com/products/cave/