I am not sure if you are mixing allowing teleportation with not allowing natural locomotion or if you are claiming that allowing teleportation would be limiting the game in some form. Many games support both. My comment was about people complaining that the game should not have support for teleportation (since they don’t use it).
There are plenty of multiplayer games with locomotion. The problem you describe regarding not being able to play multiplayer has been resolved in this games with different mechanics. Most of them use some form of stamina so you can’t just run away. To name an example since you claim no one has done it take a look at half life alyx.
I agree with the fact that it doesn’t work well for existing games non vr games. But I don’t want to play those games in vr…
Regarding your static gallery comment that’s not true at all. You teleport to move larger distances but you interact with your environment by moving in the room where you are playing so you can walk, dodge, crawl, etc…. Teleporting is more about repositioning your play space so you can actually walk and move around using your body.