Companies like Lytro have started working on solutions to let you move your head around a little bit, but that's about the extend of video for the foreseeable future.
Still, you don't always want to be moving around in a scene. People sit and watch movies all the time, so there's going to be a place for it.
The other half of that is when your motion isn't translated 1:1 to your perspective in the game (e.g., exaggerated movements in a first-person shooter), that's when you can really feel simulation sickness.
Valve's "room-scale tracking" actually solves a lot of that by keeping your perspective in sync with your real self. I'd say it's the best VR solution I've tried yet.
The reason Oculus took so long to announce a consumer version was largely tied to the fact they hadn't solved the nausea problem. Now they have.
All the hardware improvements there presumably don't help if there isn't a different image to view when you move your head.