You might have been fine with the smooth motion, but one of the major complaints with VR FPS and the driving need for the teleport motion and hard viewpoint turn mechanics are due to how common it is for VR to make people motion sick. This is why I think they won't be able to simply add a FPS mode and just let it go. They would need to implement the teleportation mechanic, the 'click' mechanic to change the direction you are facing, and let's not forget the object interaction mechanics VR has. I'd be willing to bet money the current implementation of VR has accounted for none of these things.
How would the teleportation work in a multiplayer environment? I can't see it myself. I think it will be normal locomotion. If you suffer from VR sickness then there are ways to combat it such as these items:
https://www.3drudder.com/
and
https://www.cybershoes.io/