He's not wrong when the hold point of VR is strapping a screen to someone's head. You can tell by watching a VR demo that seeing what they are seeing is still not the same as having it on, in fact, that is the biggest defense of the tech that comes up when someone isn't impressed by it, it seems. Add to it that Sony talked about Project Morpheus at E3 and chose to not show anything on stage and you can see why this very much is a product that works better by experiencing it.
That is not to say that people won't find gameplay ideas where outside observers "watching you play" could be part of a gaming experience, but as it's main selling point, it's all about immersing one person into a world by shutting out the outside world. Nothing about that is a social experience, or should I say a local social experience. Playing with people online is one thing, interacting with others in your house is another and as we all know, Nintendo doesn't want a living room experience that is about shutting yourself off from everyone else, at least not as it's main focus.