Apple is definitely enamored with the service business model, but I think the issue with VR is a lot more clear-cut; Apple can't release a $1,000 headset in a market where $400 headsets exist too. VR is a novelty, and people will probably reach for whichever option is cheaper.
If you want a more clear-cut example of this happening in the past, compare the launch of the PS3 with the Xbox 360. The PS3 was the better console in every way, being faster, having more features and not being made by Microsoft!
The Xbox 360 destroyed the PS3 at launch. Turns out, desperate consumers just wanted a cheap box to play vidya on. I think Meta knows this, which is why they go out of their way to undercut everyone, all the time.