Does it need to blend? Were Racket the only supported scripting language for Oculus I'm sure people would just learn Racket rather than skipping out on Oculus.

As sklogic said, no need to learn Racket:

It has multiple Lipsy dialects: http://docs.racket-lang.org/guide/dialects.html

And a datalog one: http://docs.racket-lang.org/datalog/index.html

It knows C: http://pkg-build.racket-lang.org/doc/c/index.html

And Javascript: https://github.com/lwhjp/ecmascript

And Algol: http://docs.racket-lang.org/algol60/index.html

And Pascal: https://github.com/soegaard/minipascal

It shouldn't be too difficult to teach it Lua ;).

No need to learn Racket, it's easy to build any language on top of it. Having a single meta-language as a base allows diversity and choice for end users that is not possible with any of the inferior (non-meta) languages.