I recently posted a similar thread in off topic:
http://shmups.system11.org/viewtopic.php?f=3&t=55835
Hearing about Rez Infinite on the Playstion VR has me excited about this. As a huge Rez fan it think it would be way cool to hangout in this alternate world if you would, to finally be "in" the system for the first time. Similarly, a Panzer Dragoon Orta like VR romp would also be incredible as well.
From a technical standpoint, I think the tech will be fine to pull it off. It could be like Wii Sports Bowling. Not the most realistic looking bowling but the most realistic feeling bowling with the added motion controls. The more realistic hawk flying Playstation VR title gives a good indication of what can be pulled off and looks real enough at this point in time for a launch title or tech demo.
As far as shooters go I think they will utilize the ability to look around. Also I think the PS VR uses two move controllers. So I see a Starfox like game where you can look about and even behind you to blast the enemies and open doors and gates blocking your way. Using motion controls you will probably be able to fire in all directions. Or how about Robotron VR where you are down on the grid looking one way and shooting in a different direction. I hope this can be realized down the road.
Edit- also you will probably be able to use the headset as an alternative display for normal games. I would imagine playing a Tate oriented shooter will be like playing it on a vertical movie sceen from about the 10th row back, might be sweet.