I agree with you that virtual reality is very near. Not too long ago, in fact, I was going to post an article about current advances toward VR, but when I hit post I was told that the source couldn't be posted on FR.
On another note, the biggest factor that holds back progress is just inertia - most people can only handle so much change all at once. Then also, you have compatibility issues when everything is geared one way and it's more expensive to transition to the better product/process than to just keep the inferior but entrenched product/process.
Take something as simple as light bulbs. We now have far more efficient and aesthetic LED lighting technology than the ordinary incandescent bulb that we're all accustomed to. If it were based on just the best product, incandescent bulbs would have already gone the way of kerosene lamps, but because they're entrenched, of course, it'll be a long time before that happens.
This concept is why IBM beat Eniac. :)
You're right.