Perhaps there is a market for humans who create art while the buyer watches it being created. I've seen street artists who do this.
There certainly is, many artists stream their process or post timelapses.
Most but not all of the lag components scale with refresh rate. There is a point where increasing refresh rate won't make much of a difference anymore, where that point is depends on how bad the non-scaling components are. Many input devices and some displays have shockingly bad lag and will dominate total lag even at 60Hz.
The thing with milliseconds is that they add up. 10 ms for input lag here, 10 ms for game logic, 20 ms for triple buffered rendering there, 10 ms for the display and you're talking some blatantly obvious amounts of lag.
Also I reject the notion that it's only about input lag. It really isn't, it's about motion blur from eye movements. Anybody who has used VR with and without reprojection at the same in-game framerate would be able to tell you that. It's far more obvious in VR but the problem is largely the same on flat displays.
I got one for Ring Fit Adventure and it's just nowhere near as fun as Wii Fit was, and it's not as good a workout as I can get from VR games like Pistol Whip or Dance Dash either. The only worthwhile experience I had on it was Super Mario Odyssey. Every cross-platform game I got on it thinking I'd play it hand-held I wish I got on Steam instead.
I did at least like the split ergonomics of the joycons, shame there's no real D-pad.
I wouldn't call VR a well served market, there's so much that needs improving. Visual fidelity is low, with narrow FOV and obvious optical aberrations even on the most expensive headsets, headsets are big and uncomfortable, full body tracking even when available at all is kinda garbage etc. etc. I won't even bother to complain about the software since for now I think it's so massively held back by the hardware.
The only thing I still have hopes for is that Valve isn't completely done with VR and that their next headset will be as sanely designed as Vive and Index were.
Here is how platforms die: first, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die.
It always starts with the users.
"It may be that our role on this planet is not to worship God but to create him." -Arthur C. Clarke