I think it was McLuhan who said that each new medium begins by imitating the old. e.g - The first television programs were basically radio broadcasts with an image of a talking head. It took a while for tv to break out and capitalize on the features of the new medium.
VR was always going to be measured by gaming. But its well-documented problem was that a very large subsection of games (1st person) have a considerable barf factor for a considerable section of the customer base.
So VR may have had great future potential for new avenues in gaming, but it was hamstrung by its weakenesses for existing games.
People got too caught up with possibilites to objectively look at how sucky it was right now.