I think Rift is in the right direction -- I've played with a few HMDs and many VR systems, and although the resolution of the Rift is extremely poor, the comfort is better than almost any HMD that I've tried.
The State of the Art in VR is not HMDs but systems like the CAVE (check out the C6 at Iowa State) where the user is in a room with head tracking and a 3D input device, and each wall (including the floor, ceiling, and the wall you entered through in the case of the C6) is a 16 megapixel rear-projected 3D display updated in real-time. The experience is very much like being in the alpha version of the Holodeck (the walls disappear for the head-tracked user wearing the 3D glasses, and any object can be walked around).
The problem with these systems, of course, is that they take up real physical space and have been prohibitively expensive for the last 2 decades. To get something equivalent to the human eye, you need close to 100 Megapixels (updated at >60Hz) with a 180 degree field of view (to avoid feeling like you're seeing the world through welding goggles). The CAVE gives you this experience, at a great price. The real problem is that it is used almost exclusively for demonstrations to visiting dignitaries and funding agencies at the places fortunate enough to have them. The genius of the Rift is that it will have a huge developer and user base (at least compared to current VR systems). What is created by this developer and user base will feed into State of the Art VR research (which has, unfortunately, stagnated horribly for at least a decade) and lead to the creation of something cool. (I'm hoping for a 100 Megapixel equivalent eye tracked VR helmet with vergence and accommodation compensation -- or true real-time digital holography -- or light field displays).
[Incidentally, 3DTV could have been the basis of home based VR systems if the game console companies had had the vision to add head tracking and embrace it for what it is -- a very affordable VR display. For those of you who have never tried it -- the experience of head tracked 3D is VERY different than just 3D. But the 3D hate is too strong -- primarily driven by people who don't see 3D, are too sensitive to the effects of current display tech, or those who have had the misfortune of having experienced badly calibrated 3D]