So fundamentally VR has more potential than AR. Things like nausea may take some time to work out but they're not unsolvable. For example, if the issue is the disconnect between the acceleration/orientation sensors in your ears and the virtual reality we can just bypass those sensors and inject a signal directly into the relevant nerves. It might even be possible to do this through the skin in combination with training. The frame rate/resolution issues will also improve until eventually virtual reality will be indistinguishable from reality (ignoring tactile input for a sec). Sure physical movement in this environment is another problem. But the end game is something that is simply incredible/unimaginable.
With AR- sure you can add more synthetic information over reality. You still have tactile challenges (you can't touch it or interact with it). It is very difficult to combine seamlessly with the outside environment to make it more than just a fancy heads-up-display.
Not saying AR isn't cool and full of potential but I don't think we can compare its potential with VR. VR is the holodeck... AR is ... a heads-up display? Not to mention the need to carry AR with you wherever you go if you want to use it in the "real world", power it, compute, etc.
EDIT: One more thought while I'm at it. You can always inject the real reality into VR and thus make it AR but you can't remove reality from AR... Or if you could the two would basically merge. So AR can be seen as VR with "transparency" ... And VR is a superset of all ARs where you can't completely remove reality.