VR sickness still applies, even if you have perfectly realistic rendering, infinite frame rate, infinite resolution, perfect tracking, and zero latency. It's caused by a discrepancy between the visual and vestibular systems. That problem cannot be solved by higher quality rendering.
It's only a problem if you are moving in the virtual world using a different method than what your body is using in the real world. If the VR world is a simple 1:1 mapping and you can walk around in it as you do in the physical space, there is no vection.
I was thinking more along the lines of neural connections, and you probably sitting in some comfy chair physically while roaming in your mind.
You know, however sci-fi "solves" VR. I agree with your sentiment, current "let's put displays on a headset" approach seems way too old school to me. A 20th century (flawed) solution to a true 21st century problem (much more than elec. tech it's bio-extension, very rich cognitive interface).
