This deliberate ignorance pretending that "$599 = niche" isn't a convincing argument, because nobody thinks that. $599
VR
without any killer applications to sell the average consumer? That
is niche.
People understood how to use Blu-Ray and DVRs immediately, because they duplicated VCR tech. TVs, phones, and consoles? Hardly breaking new ground. But VR is emergent tech, and that unproven nature means it needs to prove itself first.
You want an example of other emergent tech? Look at the original Wii. It was the budget system, so that people would give waggle gaming a chance. And let's be real; it wasn't even that good of tech used for the Wiimotes. But it was good enough for the money, so everyone and their grandma (literally) bought the damn thing.
Compare that to the Kinect, the PlayStation Eye, and even the Wii U. Better tech in many ways, but more expensive. Now the Wii U is last in the console race, the PlayStation Eye is a ghost, and Microsoft unbundled the "absolutely necessary" Kinect from the X1 and even has stopped supporting its use in menus.
Unproven tech needs to be affordable to convince consumers. Once MOST people believe in you, not just enthusiasts, you can start to ramp up the tech in both quality and cost.