VR is the new 3D TV.
I don't believe it ever become a real thing.
AR on the other hand, has quite a few interesting industrial applications.
The biggest issue with VR is that it's by nature not a passive/low energy thing in it's default mode, it's way closer to sports and work than TV, so more niche as a recreational time activity.
In essence VR competes with activites like soccer, badminton, shooting ranges, lasertag, trampolin parks etc. not general purpose home use TV. If you benchmark it against them VR, on it's current trajectory has a place to exist in garages and arcades.
If VR/MR/AR gets away from being marketed as high energy activity there is a future there, if there is found a way to make headset's superficial or significantly lighter and easy to handle at resolution better than TV screens at the equivalent distance. Powerful wireless (standalone) headsets and couch compatible VR might take off.