I was really skeptical about Oculus, but I had a chance to try out a demo by Amir Hirsh that combined an Oculus with simple Kinect-based limb tracking. I could look down and see my own hands and they really felt like my hands. I have no idea how this is going to work in practice (are we going to have to play games in large empty warehouses) but it is magical in a way that is hard to describe if you haven't had a chance to try it.