I partially disagree. Games will be created, because they can be, and there's some unique fun to be had in AR. Think e.g. of an FPS you can play with friends anywhere you happen to be right now, with real-word terrain but virtual weapons[0].
I agree though that they will not dominate VR - real-world constraints are mostly arbitrary restrictions that rarely add anything to the fun, so most games will happily do without them.
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[0] - arguably, beyond AR, to make it happen we need advances in geometry sensing and mesh networking; the ridiculous trend of pushing everything through the cloud is not helping.