Either a fad, or permanently "the future" that isn't quite here yet.
I believe it will remain a niche, just as hotas setups and racing seat/wheel setups. It's just too expensive for it to go mainstream, and lots of room needed.
There have been a few exceptions, but largely VR is the realm of boring casual WII style games. Why would I spend hundreds of dollars on a headset to do "VR Bowling" when I can just go down to the bowling alley and do the real thing on the cheap?
I'm the type of person who will actually buy something even for one game, if I'm convinced it is good. But the thing is that I'm not convinced VR is worth it, it's too much of an unknown. Either I love it and want to play every game with it or hate it and it becomes an expensive paper weight that I never use. And in the current economy I'm not going to risk that.
I almost bought a set a few years back before certain world events, but oculus just announced you'll need a facebook login for VR, and I couldn't get a HTC due to availability issues. So that was that.
I think it has a little bit of a Catch 22 problem. Not enough people own VR headsets for AAA type games to take the market seriously, and not enough AAA type games exist for gamers to spend their hard earned cash on the headsets.
I don't think it will ever become mainstream or even widely adopted as long as a good set costs €1000+
I probably fall into the latter category. I'll probably invest in a good VR headset if/when there are games I am interested in that support them, and support them well, not just a poor "proof of concept" style after thought. And when I do, it won't be a playstation one. And probably not a Meta/Oculus one either. I'll go all in, on a top resolution headset to avoid screen door effects. If that were today, it would probably be an HTC Vive Pro 2.
Actuall a console set makes more sense to me, you can't play with Mouse+KB on VR anyway, and the console is more suited to room scale it being in the living room. I used to have move! controller for the PS3, and I loved it, but Sony stopped supporting it in record time, later PS3 games simply ignored it, even ones perfectly suited for that type of controller. I'd fear the same happening to PSVR.
But the thing is I don't even have a console anymore, sold my PS4 Pro in December, and I see no reason to get a PS5. Since now it is almost a given that they'll release exclusives for PC eventually.