The fact that the Vive very openly was advertising a stand-and-walk-around experience may have helped convince Oculus that the risk of litigation was outweighed by the need to not be giving a sense of inferior hardware.
But...the early investor of Oculus is also the CEO, and he apparently has the weakest stomach for VR of anyone at the company. The hard line seems to have been set entirely by him.
Doom and Quake both made many people nauseous. So do rollercoasters, 3D movies, and Telsa Roadsters. There's no reason to eliminate experiences that most people can thoroughly enjoy. Fortunately, the fun camp seems to have won finally.
One other takeway from this release, is that we will _probably_ be expecting technical specifications and details come E3. At least, it's alluded to.
* They have an input solution and will reveal it in the next couple of weeks
* The have improved the tracking and will now officially recommend standing experiences.
All in all, a Q1 release date is somewhat sad but in the big picture it won't matter.