I got my Rift-S setup yesterday with my GTX 1060, it appears to run Elite well enough although planetary detail is compromised horribly to the point where terrain looks like one of my own University graphics demos from 2007. I set the Rift up to prefer quality over performance but I didn't notice much difference to terrain, I'll have to play around with it. I was actually very impressed with the demo apps that came with the Rift and a little less so with Elite. Something about my experience seemed subtly wrong, yet the device seemed to be calibrated properly to the point where resting my hands over my joystick felt like my arms were actually in the pilot's suit. Maybe I got too used to playing flat, turning my head to access menus is especially irritating and it does not feel natural at all.
Yes, you should expect to need low detail settings with these level of GPUs. The terrain material quality setting of medium or higher will do a lot to improve the look, while "terrain quality" can be left low and still look ok as that's the actual geometry.
Make sure ambient occlusion is off as that's a huge hit. Shadows are tough also. Set to low, as off will cause starlight to illuminate your cockpit even if the light is passing through your ship. FX quality can be hard, also. A setting of low will probably be required for that GPU, but it's a shame, because medium is the minimum that fog in stations and planets will appear.
The rift setting for quality or performance is a hidden native resolution setting.
Prioritize Quality: 1648-by-1776
Prioritize Performance: 1504-by-1616
So that will be subtle to the eye, but it will get you a few % back in performance.
Steam users should be aware that steam will anywise your GPU and automatically supersample or undersample, and you'll want to set that back to 100% in steam settings so you can effectively set your desired render resolution in game.
As for turning your head to get to menus; you can change that behavior in control bindings, but even if they appear on key only instead of headlook, you'll still need to turn your head to see them. But, I mean, the alternative is they appear in the middle of your view, right?