It's not about the quality. But about the interaction with others you can get lost in. Some of the users said this after engaging in a complex workshop we had set up as a test.

Of course they didn't literally forget that they were in VR. But that adjustment to the real environment was there.

You can also tell when people start apologising for running into other people or entering their 'personal space'. Eg standing too close with their avatar. In VR that doesn't matter technically but it feels wrong. That's when you know it 'clicked' and they're really there with a person half a world away. I get that myself too, it's great. But I love seeing it in people that try VR for the first time (and by this I mean real 6DOF interactive VR, not Google cardboard derivatives)

But yeah there is a large component of suspension of disbelief. I'm sure that will always be there no matter how good the tech gets.

>When I hear people say this, I tend to think they're a moron.

In other words, you are small minded and assume that your personal experience is universal, so anyone that experiences things differently must just have moronic levels of intelligence.