My VR set up is quite a confined space but, I only use VR for playing Elite Dangerous or other sims, so I'm sat down and not moving much. I simply won't waste my time playing certain games outside of VR now, as the experience is superior to a monitor in every way for me.
At some point I'd like to get VR set up downstairs, maybe over the Christmas break, just to play games that require more space. That'd be a temporary measure though.
VR is definitely here to stay . Current tech is becoming cheaper and more advanced peripherals are entering the market to replace the current gen. VR headset ownership has doubled in the past two years and the tech is now well established, as is the games market to cater for it. Ofc VR is not going to replace traditional 2D gaming but, it is not just a gimmick like 3D and developers are keen to make use of it.