I think VR is niche.
Do I think it will die? No
Why?
Because it is widely considered the absolute best way to consume certain content, albiet simulators. That is a niche market which requires VR, not only that it demands it to the point that Codemasters recently added VR support to Dirt Rally 2.0 because of demand which led to the slogan 'No VR, No Buy!'
The fact that VR support in certain genres is in such demand, slogans have successfully motivated developers to make sure VR is supported, I think bodes very well for VR.
I come from 3D gaming and I am still sore that nVidia has outright stopped supporting 3D Vision. I think this is easily the best way to consume standard gaming content BUT the S3D tech itself didn't improve. Games did but the tech was static. VR, on the other hand, develops. The perfectly legitimate concerns of: low res, low FoV, the absolute ball ache of installing sensors, powerful PC requirements, expensive hardware requirements have already nearly all been addressed! And as more HMDs are released, providing HMD developers are sensible to continue to sell the earlier models, the other concerns will also be addressed.
That is my 2 pence anyway!