No, they're not old timey. That's the issue you get from, pardon my language, techbros sometimes. It's what deceived people into thinking say, crypto was a linear evolutionary process that would eventually replace other aplications doing the same thing. That's not how it works.
Your smartphone comment is a great explanation of why not, actually. Yes, we've all moved to tiny screens and low battery. Why?
Because the device solved problems that we wanted solved and provided features we wanted to have. It wasn't the tech. People were as crazy about the first iPhone as they are about the 15th iPhone. The tech improvement provides a replacement upgrade path, not a removal of the roadblock to success.
What people wanted from smartphones was a camera in their pocket, the internet available when they want it and a pocketable media player with good enough quality. That was achieved very quickly, now we're just iterating.
Nobody wants a replacement workstation from VR. That's not a problem to be solved. Nobody wants a replacement game console either, as it turns out (see the attach rate of the PSVR for evidence of that). Those aren't problems to solve with better tech.
When the smartphones started exploding the techbros applied that logic to talk about device convergence. "We won't have PCs anymore man, that's the past. Everybody is going to be just using their phones".
But nope, that did not happen. We wanted convergence with cameras, so cameras did get replaced. But PC workstations weren't. Because that wasn't a problem that needed a solution. The handsets can do it, look at Samsung Dex. But nobody wants it, so that's not an application that drives the hardware.
Instead, we got that factor scaled up to tablets, and then people figured a physical keyboard is neat, so we got keyboard covers and now the smartphone tech scales smoothly from a pocket device to a hybrid device to a laptop to a desktop. But the phone? The phone is still for what it was when it was first introduced, despite its limitations, because cameras and portable media were valid use cases.
So yeah, that's the fundamental misunderstanding. VR is good for sporadic "wow" moments, social gimmickry and a niche industry of gaming and... eh... 3D porn.
It is NOT and it never will be a replacement for workstations, TV gaming or smartphones. Because those are not applications with demand for a new solution. We already know that, the tech is mature enough to know.