I wouldn't call it a novelty. More like a niche that just wasn't very successful and likely never will be.
VR is for the kind of people who are willing to spend money on a high end gaming PC and then add a significant cost on top of it. That already limits it quite a bit.
Then you need the people among those who won't get sick from VR.
Then, in that group, you need the people who won't mind that you can't really use it for hours and hours like a lot of gamers who spend big on their gaming PC are doing with non-VR games.
VR likely also excludes anyone with limited mobility.
And then, of course, you also need the people who can just shut the entire world out while using it. That likely only means people living alone or maybe with some other adults but certainly not e.g. people who want to keep an eye on their children or be there if an elderly parent needs them or anything similar.
Overall it just results in a small percentage of the overall gaming market, no matter what you change. Even if you reduce the price and performance requirements to something people can easily afford VR will never replace all other gaming.
It is, and it will be so long as the barrier of entry is so huge and the advertising is all about it being just another toy/plaything.
I’m really interested in a VR (or rather AR) environment for every-day computer use. A full virtual multi-monitor setup which does not require locking myself away from the world. It is very clear that this is not the sort of application VR is marketed for, unless you are a business with a lot of money.