No one is saying the niche doesn't exist. The embarrassing part is that ever since Jobs' triumphant return to Apple their magic was making what looked niche blow up into an everywhere device. Since Jobs passed, Apple has slowly been losing that magic, and this headset is a beautiful illustration of Apple's inability to find those everywhere devices.
Honestly, at this point, if Jobs were still there we'd probably have no VR headset, but a TV with appleTV built in that also magically provides Atmos surround without any extra hardware and magically "just works" to find any and all content you'd want to watch from any service. The resurrected Apple used to be good at finding what people didn't even know they wanted. Now it's a zombie walking around hoping people see the value in what they make.
Honestly, at this point, if Jobs were still there we'd probably have no VR headset, but a TV with appleTV built in that also magically provides Atmos surround without any extra hardware and magically "just works" to find any and all content you'd want to watch from any service. The resurrected Apple used to be good at finding what people didn't even know they wanted. Now it's a zombie walking around hoping people see the value in what they make.