Actually, I was really only talking about "left stick" movement in my post, as in WASD movement, for the "room movement". Although, perhaps it would be better to imagine the room being a cylinder instead of a cube. Rotation would be done by the player/headset, "local" or "small" movements like jumping or walking a few steps to the side, dodging things etc. would again be done by the player's body/headset/motion controllers while the actual world WASD movement would be done with the left stick.
It's really just the same as driving a mech in a cockpit, it's just that the cockpit is more like the bridge of the Enterprise so you can move around in it a bit. I guess it's mostly the same as just standing in place/sitting down, but with a bit more freedom of local movement for examining things, fine interaction, dodging rockets etc.
It's definitely not a replacement for any kind of redirected walking, just a temporary adaptation to standard control schemes.
EDIT:
I've never really tried any of the VR headsets, so maybe what I'm describing is the same/very similar to what is standard right now anyway.