I think the wiggling is actually kind of natural -- you don't notice your head or eye movements when you do them automatically, but it might be exacerbated in VR.
The fixing is an interesting idea, we'll try it out. I'm a bit worried it might feel weird in VR.
Corollary discharge[1] causes the brain to “subtract” out the motion of the image on the retina. It happens when our nervous system instructs the eyes to look in another direction. You can have someone else move your eyes or even do it yourself by pressing gently on the side of the eyeball with a fingertip on top of the lid. Wiggling one eye this way is not supported by the hardware of the eye and produces a very noticeable wiggly view of the real world.
I mentioned subtracting out the motion going on in the visual system. Experiments suggest that something like this is happening. If a muscle paralyzing drug is injected into the eye’s muscles it causes a wiggly world because the intent to glance somewhere causes both an ineffective command to move the eye, producing no real movement of the image in the retina while the triggered corollary discharge subtracts the intended motion from the still image and causes a perceived motion (in the opposite direction).
I think navigation needs eye tracking, which sadly no headset currently supports. Focus-follows-gaze would be a game changer.
Right now, Simula uses "dumb" eye tracking, in the sense that windows receive keyboard and cursor focus when the user's forward eye gaze intersects a window. We also have it so that users can control the cursor focus with their forward gaze (presently binded to `Super + Apostrophe`); similarly, users can drag windows around by holding `Super + Alt` and looking around. The experience adds up to something quite productive once you learn all the keyboard shortcuts (your fingers don't need to leave the keyboard).