I agree, PSVR1 was awful and so was any other VR headset with 1080p screens. The tech has only just now become good enough for VR racing. You get used to the reality disconnect, that's kind of the point. It becomes like getting into a teleportation machine, blink and you're no longer in your room but on a real track driving a real car, minus the g-forces of course (oh if only!). I've also raced plenty on projector and 3 screen setups, it's great but IMHO there's nothing like the feeling of physically driving the car from inside of it with depth perception.I tried PSVR1 with GTS. What a blurry mess that was. Also didn't like the complete disconnect from reality. You are right VR is not for everyone.
I use a 104 inch projector screen and if you sit close enough, it is very immersive as well.
Each to his own of course but I have to say that I also didn't prefer VR to flat screen until I had spent over 7 hours in it; I missed the freedom to look away from the screen and the 4K visuals, but now it's completely the opposite. I think the brain needs time to make sense of the new inputs and become 'connected' to the new reality that you experience inside VR and, as many have said, your lap times usually improve once that happens.
As VR tech improves and becomes more affordable I truly believe that flat screen racing will become a thing of the past, but only time will tell.