Speaking from first-hand experience, there is some latency which makes the virtual display a lot less comfortable to use, and it's capped at 60Hz. It's effectively a coat of paint over Apple's typical "screen mirroring" feature, which is excellent for showing people stuff, but not necessarily for using it yourself.
60Hz is really not great for VR as it can lead to motion sickness. Even the Meta Quest 2 launched with 72Hz and then bumped it to 90Hz-120Hz to reduce potential motion sickness and some people still feel it.
It could be also why Apple didn't market it for gaming and in most marketing shots people are using it sitting on the couch, not standing or moving with it.
Could be, but the #1 reason for sickness is moving in VR while not physically moving. Like on the Oculus moving with the stick which the VP doesn't have.
This is simply a requirement for most games, there's a really tiny subset with the user in a small space where they only move naturally by actually moving. Like Beat Saber. I think this is one of the reason it's so popular. I personally don't care for this kind of game, I love exploring complex environments.
It's true that some people still get it, often due to low framerate or vergence accommodation conflict. But these issues can be avoided with high framerates and not sticking stuff too close to the user.
The remaining users that are still experiencing some nausea are really few and far between.