The problem with the second type of VR, aside from that annoying guy who demonstrated it, is that you can look around, but you can't move around. Everything happens as if your feet were planted in cement. This eliminates the possibility of exploring environments. However, the motion that simulates looking around is quite fluid and seems to coordinate well with head movements. It would work great with flight simulations, because everything you experience on a flight is from the fixed position of your seat. You remain stationary on a plane, while everything moves past you. It would also work well with racing games, I would think.