The DK2 already has a low persistence display to reduce issues. That + black frame insertion at 120FPS would pretty much remove any kind of motion issues. The problem is Consoles will NEVER reach this level of performance with acceptable visuals within the next 5 years. It will completely defeat the point of Vr. not only that, a high density display and high quality Anti Aliasing (Not just MSAA. MSAA won't do the job) are needed if "VR" is really what is wanted. Each of those things will be immersion breaking. And by high quality AA, I mean like this http://screenshotcomparison.com/comparison/80318 No AA vs 2.25x SSAA+4xSGSSAA The difference in motion (which is FAR more important) is GIGANTIC. High quality AA requires a lot more GPU power. Afterall "VR" is "Virtual Reality" In reality, there is not obscene aliasing and temporal instability as you move your eyes around
I think Palmer Luckey's just being a brat about the 120fps. We were all that age, being degrees of raging trolls for something unfeasible or impossible with current hardware, and some people haven't outgrown it.
BTW for all cheapskates out there, google has your back: That's a cardboard VR headset you slide your phone into. Boom! hobo-VR, so you can pretend you don't live on the street