I think it is a far different issue from the setup PSVR1 had.PSVR2 is still tethered. Without a wireless option, it's going to require roughly the same setup as the first PSVR1, which was already enough for many users to let their headsets gather dust.
We were talking about far more cables, a separate breakout box, and the console had to go through the breakout box which did not support HDR (even if you upgraded to the second model with the HDR capable breakout box you will be bandwidth limited for 4K HDR and higher frame rate).
We are going from all that to a single cable between console and headset. It is unfair to see the two situations as comparable.
Because it is a far better headset, with a far simpler setup, and supports next generation VR games .This was acceptable for the PSVR1, because it was the first generation of VR, but future facing VR is wireless, which places PSVR2 firmly in the past. Why buy a new VR headset when you stopped using the old one because it's a pain in the ass to setup?
Compared to Quest 2 without PC perhaps, but then the visuals are nowhere near comparable and still specs wise (display tech) it does go above it too.Secondly, the cost. The PSVR1 punched well above its weight, coming in as the cheapest headset at the time of its release, while also providing a pretty great entry level experience. For its small cost, it provided a gateway into VR and was an easy recommendation. Hell, some PSVR1 and PS4 bundles were cheaper than some PC VR headsets on their own. However, times have changed. PSVR2 is not punching above its weight - it's punching at exactly its weight. All of the positive impressions for PSVR2 simply align it with existing PCVR headsets. So, its more expensive than the Quest 2, which is a pretty brilliant piece of kit and works with and without PC, but without really providing much in the way of truly objective improvements. Quest 2 has some really great games out of the box without requiring a PC, while PSVR2 requires a PS5. If you're just interested in VR, PS5 is now a comparably expensive option, whereas PS4 was really the most cost effective option if you wanted to get into VR. Now, this falls in line with Sony's current PlayStation pricing strategies - charge more for less - but its a proven kiss of death to peripherals. Without the value attraction of the PSVR1, I'm not sure PSVR2 will maintain strong sales after the launch period.
Another issue is that the PSVR2 will have a tiny library for, potentially, years. PCVR has spent years cultivating a large library, and even then, there's still only a few truly great titles. PSVR1 had this problem too, and it took most of the PS4 generation for it to build up a solid library of titles. PSVR2 throws all that work away. It now requires developers to do porting for free, or, require users to re-buy PSVR2 versions of their PSVR1 titles. Without a built-in day one library of improved titles, PSVR2 is a hard sell. The launch window looks to be almost laughable, and if it wasn't for Horizon, I'd question why Sony are releasing it at all.
Lastly, the "new" factor is gone, and combined with the above, means PSVR2's target audience is going to be that much smaller. At this point, core gamers have likely tried VR in some form. For a not-insignificant-number, VR isn't for them, or at best, the current crop of VR headsets isn't for them. PSVR2 doesn't really address a lot of that. "The image is less fuzzy" is a nice thing to solve, but if PSVR1 and Job Simulator wasn't for you, then PSVR2 likely won't be something you're chomping at the bit for. At least not at launch, given the low-quality initial offerings. The curiosity for VR has died down, and as part of that, it's found its enthusiasts, but also those you simply aren't coming back for another try just yet. I'm certainly a VR enthusiast, which is why I moved from PSVR1 to PCVR, and once Sony has built up a good raft of exclusives, I'll gladly jump in. But, I feel that I'm in the minority - and it creates a negative feedback loop. I won't buy in until Sony have properly supported it, which they won't do until people buy in. There's a chance there isn't enough critical mass for Sony to be able to fully support it, and we end up with another Vita: brilliant hardware with un-Godly wasted potential.
Anyway, thanks for coming to my TED Talk.
Compared to PSVR1 it is not only that much better of a headset, but it also packs the two controllers (and requires no PSVR camera) so it is still a quite good deal.