I'm afraid that I don't understand the link between people dropping out of VR and a lack of good games requiring physical movement. As you said yourself, the top lists are dominated by those games. Not because they're superior, but because you can already play non-physical games on other consoles (PS5/Switch/Xbox, computers, phones, etc).
I'd even go so far to say that the lack of non-physical games is the biggest detriment to the continued adoption of VR. Stick with me for a moment as I reason this through.
Even the most fit player can only spend an hour or two playing physical VR games. What we do when our body is exhausted from exercising in VR, yet we want to play games some more? We go play more traditional games on a monitor or TV (or phone).
Why do we change which entertainment device we're using? Because the non-physical games we want to play are not available in a VR setting. We can't play angry birds, Call of Duty, Hades, Genshin Impact, or FFXIV in VR. Thus, we must have at least two consoles. Which for most people means they'll have just one console, because consoles are expensive. And logically, that means most people will go for the non-VR console, since it has more games, by several magnitudes.
In contrast, if our entire library of games was available via your VR headset - even as a "you're sitting in a theater" experience - I believe many would be happy to play them there. They could get their full experience with one console.
