Interesting how HTC went the high end (and very expensive) route with their Pro headset + wireless adapter, while Oculus went low-mid with a standalone device.
I think the form factor is the key selling point. Even with wireless you are still effectively tethered to a PC and the hard mounted tracking space which is still dangling wires everywhere. In comparison the Quest works in larger spaces with zero setup (unless you want a safety barrier rendered) and they don’t fight with one another. Due to that you can just sling it in your bag and take it anywhere, won’t need a dedicated space at home and can just stick it on a shelf when not in use without having to break down the tracking space or leave unsightly stuff in place.
I also think this will help push VR onto office desktops. Companies I’ve visited tend to keep their VR gear in one central location or worse in a store. Use is sporadic so adoption is really low. Having a simple unit on your own desk is much more accessible and much less embarrassing to experiment with.
Also given the way the tracking works it should be reasonable to share data between devices and take part in shared VR in person. I believe there is a demo at OC5 where they are doing this already in a big hall.
Oculus is seemingly trying to avoid incremental updates, from what they've been saying they're holding off on Rift 2 until they can ship with variable focal [0].
In the end I think this is the right play, as much as some of us love PC Gaming it's pretty much niche compared to the audience Oculus are trying to get. I've blown some minds when I showed my friends my PCVR setup but none of them were willing to buy tower PCs to get it at home, $400 stand alone headset though? Definitely.