Virtual Reality

Both. But the Meta Quest(s) in their various guises have still been the best selling VR hardware in the time span which they existed. Instead, this is the tacit admission from Zuck Zuck that we've all been waiting for, which is that his plan to dominate the VR market by burning absurd amounts of cash and moving hardware at a loss to squeeze out other competitors did not work. The overwhelming response (among nerds, anyway) to the Steam Frame is likely to have had something to do with this.

I love VR but I would never ever give any money to Meta.

The current state of VR does still seem to be such that interest is limited. I think the main thing is that using the hardware just needs to get less involved for the masses to bother. If wearing it was like eyeglasses both in terms of weight and what it does to your ability to have awareness of your surroundings you'd probably have many more people interested.

Another piece of the puzzle is certainly the content gap between flat and VR as AAA game devs just don't see the business case for it still. Things like UEVR and 3D becoming something that is easy to get out of any game or video thanks to AI efforts like Google's autospatialization could potentially help a lot here. Same with other types of 3D capable hardware like glassless 3D displays and smart glasses becoming so common that 3D becomes more interesting to support again.