A significant benefit of higher res VR displays is not being able to physically see the pixels / screen door effect of the screen. You still get this benefit by rendering at a lower resolution and upscaling to the display resolution. Certainly you will be able to see 'render pixels', but that's a much less significant problem and just reduces the realism of the scene.
The brain corrects for things like that automatically. Might work just as well here.
It is not a must, but it is a mostly. Most people want something approaching realism by default. Stylism is okay but it isn't the primary use case.
The video game sales show this. Top selling games are mostly ultra realistic, Witcher, Call of Duty, Modern Warfare, Battlefront, etc. Yes there is Nintendo's low end strategy but most are ultra realistic.