I think you're right, but I disagree that he has no choice — he can find some other “moonshot”. Pushing VR (or AR) seems like something he thinks will play well with the stock holders; and if he is as skeptical as some of us then he's kind of playing them for rubes.
Hearing them describe their own product as “Chromebook for the face” just reconfirms my suspicious that this is a doomed product.
Seems like he has no choice. Even if it doesn’t work or we’re all skeptical — he better play along and go for it.