Messed around with a PSVR today for a bit and what stuns me is how shit the processing unit box is. What a piece of garbage.
I knew it was only HDMI 1.4 and wouldn't support higher end visual features but what I didn't expect was the awful color banding that results. The box only outputs 8-bit per pixel and the end result is a reduction in image quality on the connected display even when the PSVR itself is not active. You can see it plain as day on the PS4 main menu. Without the box, the blue colors are 100% smooth with no color banding at all. It looks fantastic. With the box connected, however, color banding becomes an obvious problem and it looks lousy.
So, basically, the processing unit degrades image quality even when outputting at 1080p.
Yeah, those types of demos are amazing. Oculus Dreamdeck is rather similar in that regard.
It's also why I absolutely adore New Retro Arcade on the PC - exploring a fully functional 80s arcade just feels incredible due to the close quarters.
That's really what I've learned about VR - the small scale environments tend to be a lot more impressive than the larger scale ones.