Absolutely. But the Virtual Boy was clearly before its time. The hardware just wasn't ready.
Within the current constraints (including budget), making a "good enough" product is clearly not feasible.
I think that's clearly not true. The response from everyone who's tried the Oculus Rift has been that real VR has finally arrived. And the Oculus Rift is one guy's prototype; the resources of a company like Microsoft or Sony could drastically improve it in several dimensions. Specifically, they could source a higher-res, higher frame rate, lighter, lower-latency OLED display, and connect it to rendering hardware with all the latency-reducing features John Carmack just described. These features aren't necessarily expensive from a hardware POV; it's just that nobody's seen the need to implement them yet.