> solution looking for a problem

I think it's not actually that bad a situation, to me I think we're just at matters of degree. To explain:

It's not that people can't see that it might be super nice to have an experience kind of like the AVP for a few already-known problems:

1. As an alternative to a big, heavy, non-portable display(s) or a bulky laptop for people who can't always just work at a desk.

2. As an alternative to a TV

3. Fun gaming applications. For instance, MarioKart Home Circuit is a neat game that uses physical karts with cameras, which you play on the TV, but imagine how cool it would be if kids could run around the house and the neighborhood with friends in AR racing karts that only you can see.

1 and 2 are already perfectly there, and obviously a very small number of games that take advantage of VR exist, but they're not that ambitious.

The issue though is that nobody wants those 'problems' solved badly enough to (A) pay $3500+ plus tax for it, nor (B) wants to wear a very heavy and awkward-looking helmet with poor battery life.

The promise is there. If a device can be made that is far lighter, can fold to fit in a coat pocket, with better battery life, and costing $1000, that could go a long way to being something people would find well worth the effort of carrying around and worth the cost. If everybody has one and it's comfortable and light, watching movies on it together, either on an awesome AR screen with atmospheric effects, or in a VR movie theater could be a fun experience rather than look like an absurd antisocial nerd thing.

All this will require investment and improvement of the tech, and will require a healthy developer ecosystem, but with those pieces I'd give the idea itself a good shot. We'll see if Apple is willing or able to do either one. If not them, someone else might.