As for AAA titles...
Hopefully, the Rift does not have the 'gets people sick' problem the Vive has with Elite Dangerous. Although users in the ED forums mention they have to turn settings down to get the DK2 to work w/o nausea (probably by keeping the framerate up). Same idea with the 'screen door' effect...hopefully not on the release version.
For Project Cars, you should note the Oculus release version "highlights the limited pixel density of the Rift, and even with anti-aliasing you still get pop-in and jaggies as a result."
sources:
- sick; article comments here at Toms by Kevin
- turn settings down; from Elite Dangerous "VR discussion and support"
- poor AA/jaggies and pop in; AnandTech article 16 Mar 2016
Any comments I have made in the past regarding how Project Cars performs is irrelevant. I have not yet played the game on Retail hardware, nor have I played it with the latest build.
I don't think - at least with current technology - that you can completely eliminate the "gets people sick" problem. The latency between head/eye/hand movement and the HMD's screen will eventually be eliminated, but you are still left with the problem of your brain. Your eyes ca be fooled to think that they are moving through the game's environment, but your brain has other inputs that tell it that your body is not moving or experiencing any acceleration/deceleration. That dissonance between inputs is what causes discomfort and nausea.
You can decrease these effects, by improving the experience and the immersion as much as possible. A good example is VR treadmills like the Virtuix Omni. It's more natural for your brain to experience a first-person shooter environment with the body in an upright position and walking, instead of sitting on a chair or couch while your eyes "think" you are walking.
Even with these improvements though, some people's brains might still be too sensitive to these differences from the real world. In the FPS example, even with a Virtuix Omni and a very good HMD, you still have other issues. For instance, there is no actual acceleration or deceleration when you walk/run/stop and your brain can tell. Even your character's height might throw your brain off, as it sees the ground in a different distance than what it's been used to for years.
Maybe in the future we'll see VR systems that tap into our brain and fool it on other levels, not just optical. Or who knows, maybe we're just not used to it yet and future generations, with VR available at birth, might adapt and overcome those issues.
latency is not a problem. hand and head tracking are one to one. Any lag is imperceptabble from my experiences.
There certainly are games that don't work well for VR. Your example of moving in an FPS is a great one. Moving with a joystick while sitting can be very uncomfortabble for many people. That's one of the reasons you won't see a Call of Duty like game on Rift, at least not for a while.
Acceleration is definitely a problem in VR, but that's why it's generally not done. Most developers have figured out that constant motion is fine, but acceleration and deceleration are not. Seated settings like being in a cockpit tend to cheat that in a way, likely because we're used to riding in vehicles and planes, and not feeling a lot of the sensory input you'd expect from something like riding a bike, where you are exposed to the elements.
The Omni does let you accelerate and decelerate, and it's not uncomfortable to do that, because you have to physically move faster to move faster in a game. Transition between two speeds is not a problem on the Omni.
Character height is a little weird when its a dramatic change, but your mind gets used to it fairly quickly. In the case of the Vive, it can tell where you are standing, and how tall you are, so you are represented in the virtual space as you are in real life. The Rift may or may not do this. I have no idea yet.