yeah, the tech just wasn't there for vr. just like how llms aren't the be all end all of generative machine learning models. agents are getting close, but with the tech we currently have there is no way it could reach the promised agi status.
i actually protested to my professor about this when we were working with neural networks in 2014. were were doing handwriting recognition and i told him "this isn't ai". he shot back "oh really? then write me a paper on why" and i couldn't do it because while i could describe what ai is not, i could not define what it actually is. that feels like the main question we want to be solving for, rather than "how to get statistical text generators to seem clever".