It isn't surprising that the software isn't there yet. It is more unexpected that the hardware isn't. While not perfect, other VR headsets do work well for their intended use cases of gaming and video. The Vision has significantly higher resolution than any of them, but it turns out that it still isn't high enough for the use cases Apple had in mind, even after compromising FOV to improve PPD. People have gotten used to using iOS apps at retina quality, and having to either view them blown up or blurry with the Vision isn't a great experience.
I'm not sure what level of skepticism you are at. But I will say that AR/VR is already great fun as a toy, and for some people with social issues, it can make situations more comfortable.
It's not just pure nonsense or "not ready for consumers" yet. For people using VR daily, it is entirely good enough for their use cases, and they have useful use cases (even if "useful" means "entertainment").
But I would agree that very very few people need it and trying to get it mainstream where "this is how everyone is consuming media" is a bit outlandish.