It's not been removed.
Only 1.9% of steam users have VR, catering to less than one in fifty of your potential customers is a bad idea. Once VR gear improves and has wider support straight out of the box it'll pick up, for now its an extremely niche thing.
This idea has been discussed already, Elite is one of the top VR games games, so VR share must be far above that average Steam VR users. By that metric the graphics and lighting should remain optimized to a GTX 1060 as by far the majority of users don't have anything better.
Also, VR headset pricing is now comparable to monitors, so it is hardly a super expensive thing now. It will remain enthusiast gear, sure, like 4k or 144hz monitors.
The point everyone is trying to make that 1. Elite was adverised as built for VR 2. VR is the cutting edge of the experience 3. Most of Elite's great community driven content was driven by old-timer enthusiasts with large VR share, they are being driven out from the game.
VR is now a must in the sim world and most developer acknowledge it. But we needed broader FPS scope for a spaceship sim that is being criticized for being 'mile wide and inch deep' instead of focusing on the core experience that made it unique (visuals, scale and flight physics). Again, for this I can't blame FDev as this was the popular request -