I think you're right. I have a DK-1 and I think it's a cool novelty, but in terms of mass market appeal and everyday uses, I don't really see it. You look weird with the thing on your head, it's heavy and fatigues your neck, you still have to use a kb/mouse input device to control anything other than where your avatar is looking, you can't see anything else around you without pulling the HMD away from your face (bigger annoyance than it sounds), and nobody else can see your screen (in fact, when I used the DK-1, I would often clone the output onto the main monitor so my wife could see what I was seeing and vice-versa). It kills the limited real-life social interaction people can have with video gaming now.

3D TV was very similar in that it worked great for one person, but once you got more than that, you had to make sure everyone had their own pair of glasses, everyone was sitting at an appropriate angle, etc. You couldn't just walk in and out and have a casual social TV experience, because for people without the glasses or sitting at the wrong angle, the image is blurry and unwatchable.

I think there is a market for VR, but I don't think it's the mass market. That doesn't mean VR won't eventually get there, but it's not there now.