Earlier quoted context omitted.
My thoughts as well. Plus the price is roughly comparable to a higher end smartphone. Given the hardware and software involved, it's not terribly far off for a gen 1 device. I think of the Palm and WinMo phones I paid $500+ for during the early generations of smartphones and it starts to make more sense. And just as I'm sure those devices from Palm and HTC could've been a lot nicer even with the tech of the day, the…
Unfortunately this is socially positioned more like a TV or a games console, rather than a smartphone (used every day all day), which have much longer lifespans than a smartphone (5-10 years vs 2-5 years). The interesting question is how long before this version of the Rift becomes obsolete, or will Oculus provide a contract-based upgrade plan (like for phones).
I'd be totally OK with it costing $1000 if it could really provide a great VR experience.