1) VR didn't actually exist yet.
2) Unreal Engine is beautiful, and didn't exist yet.
3) Bandwidth sucked (and still sucks a lot for many people).
I think you're completely wrong that "nobody wants this after they've tried it." I'm essentially describing Steam VR, and Oculus Home... except I also want hyperlinking between the experiences, and I want the App to download and install much more like how a Browser works than how Steam and Oculus Home works... Which would be aided a lot if we just used one damn engine (Unreal Engine) for everything, rather than having to install the full engine for every World.
Eye strain: I'm very hopeful that Magic Leap or other Light Field Displays will help. Also, okay, so, VR is amazing for an hour. =)