VR isn't going to replace flat-panel gaming, it's a new medium, and for more than just games. Think of a VR headset as a new kind of output display, not a new format for video games.
I agree with that. When I say "take off", I mean become popular with or useful for the general public. It makes a great demo though. Also, I'm talking about the current generation of VR that involves strapping something to your face. Get rid of that and everything changes.