Virtual in Use at Companies and US Army (Score 1)

Virtual reality (and in general, immersive and simulated environments) is definitely in widespread use.

My company develops high-fidelity vehicle simulation technologies for doing human-in-the-loop testing of vehicles. As you can see on our simulators page: http://www.simcreator.com/simulators.htm, we have used CAVE environments, HMD's, stereoscopic glasses, wands, motion bases, power-walls, and plain desktops for vehicle simulation, engineering, and design.

We also make heavy use of VRML for our visualization and terrain definition. Being an open-standard it is much easier to build and obtain tools for viewing and modifying the worlds.

Virtual Reality is very much alive. However, since it's not as new, cutting edge it doesn't make all of the up-front news. It's moved, as good technologies do, into use and active development in the real world.