We had a lot of fun by having someone hold the device mounted on a pole, looking down on the viewer, and following them around the room. This provided a weird, quasi-video-gamey third-person perspective, like in GTA or some other.
And these guys did that with a car: https://www.youtube.com/watch?v=nIRUavithF8
Virtual embodiment requires a separate camera in addition to the VR. What they do is have you don a VR helmet, and in that you see the environment around you - but actually it's the camera mounted on your face. Then, however, the perspective begins to move. Without you moving yourself, the view you see moves, turns around, and you can see yourself. At this point, you basically feel disembodied. But then the perspective is slowly moved, with your real body still in view, into a 'virtual avatar' of some sort. From that point, everything you see is from that avatars perspective, and as far as your brain is concerned, that IS your body.
They have used this to transfer the perspective of large, imposing men into the virtual bodies of small women, then they have large, imposing male VR characters come in and begin shouting at them. As they look down, they see their thin arms, their short stature, their lack of muscle, etc, and they get legitimately scared of the huge male figure confronting them. Tests afterward showed that the men who underwent this experiment (men who had previously been abusive to their partners) showed a marked improvement in their ability to recognize fear in the face of others, an impairment common to most abusers.
It's a fascinating topic, and one of the leading researchers using it, a Dr. Metzinger, has proposed that a VR Code of Ethics be considered. I don't personally think we really have the ability to competently form such a code since we're pretty early on and don't really know how things will affect people, but it is an issue that's being considered. Any time potential censorship of things like this is proposed, I always consider the case of actors in films and plays. They're already far more "immersed" and doing things more "interactively" than any technology is likely to enable us to do. They use real guns (loaded with blanks), shoot them at real people, see blood packs explode, see those real people they personally know crumple to the floor or wail in pain, etc... and they're fine.