It works, but there is usually a noticeable difference (at least with Quest).
Have done quite a lot of quite active stuff (exploration, driving, flying, fighting games) and it really is seamless and I don't notice any lag as long as the game itself manages good FPS.
If you really concentrate on the graphics, you can see some compression artifacts in places, but it is unnoticeable when you are actually doing VR stuff, not just looking for it. :)
For the Frame, this should all be much better - easier setup, much better available bandwidth (dongle has Wifi 7), efficient foveated streaming, etc. :) I would exect better image quality (more bandwidth, more efficient streaming), better FPS (more efficient rendering) and better image quality (can reduce compression).