Human psychology will ultimately define the attributes of VR and AR that will finally to come together to create a believable experience, and a viable product.
SteamVR allows the user to walk freely around a small virtual space, demarcated by a couple of light-emitting base stations. It’s no exaggeration to say that this freedom completely transforms the VR experience.
It’s the difference between having a viewport into a virtual world and being in it. Your physical, sensory and emotional connection to the software is on another level altogether. You feel grounded there. My memories of playing Elite on Oculus Rift are images – the memories of playing a game. My memories of Valve’s VR demos feel more like memories of places I’ve visited.