[vonjuice]

I think that in this context what it means is that it's something fabricated and put on flat screens. Quite literally there's no depth to it.

Dreams are another beast entirely, you're fabricating and perceiving the contents at once, like you say, with all the senses.

VR takes advantage of our vision being so prevalent among our senses, but the fact that only it and sound are involved is what makes it fake.