You can assign headlook to an 8 way hat switch. It takes a little to get used to, and you lose the Hat (Turns out you can keep the hat for other assignments. I retract this portion of my statement), but its viable.
Some people (like me) combine a pressed button & the hat for headlook and have the vanilla hat still functional - works like a charm after you get used to it, at least with the cheap but quite functional Thrustmaster T.Flight.
Im using the POV hat on the flight stick of my X55 until I get the Oculus. It works well enough. You definitely cant compare to track-ir or oculus, but once you get used to it, its not so bad.
That said, I've had the opportunity to try oculus dk1, and even with its low resolution making text unreadable it was absolutely fantastic. I just hope I manage to put enough cash aside before they release it, and add cameras so you can toggle "see through part of the screen to find your keyboard".