And yet the majority of drones on the market transmit digital re-encoded signals even without low-latency. The point I was making is that just because something isn't suitable for the most extreme condition doesn't make it "horrible" or "foolish". The world is dominated by the general purpose use case, not the niche extremes. There are more city bicycles in the world than high end racing bikes. The fact you don't see them in the Tour De France doesn't make their existence horrible of foolish.
I've also had many drones, even have a small one for doing tricks on (I'm not very good, I'm not trying to compare myself to racers). None of them I guarantee you have the low latency anywhere near any number you quoted, but yet they are normal common products enjoyed by the vast majority of the people.
In that regard will the Quest 3 or Valve's Frame be used for PCVR e-Sports competitions? No. But that doesn't make them horrible or foolish. OP even talks about using it for iRacing which is even dumber since racing reaction is predictive not reactive, the course doesn't magically changes and low latency will not determine his performance either. It's an arbitrary metric which doesn't apply to the common person.
And I remind the readers that "common" here is already a niche product. If you're hoping someone caters to a high performance niche of an already niche platform, man are you shit outta luck.