I really hope Sony focuses on making VR games with very low fidelity, if it can provide a great VR experience. Just look at how good the Nintendo games look on the low-end Wii U. Nintendo simply uses an art style that works well with a lowered powered system, and all their games look great. Sony needs to think along those lines with this first VR attempt. Don't shoot for the moon with crazy high end visuals, if it's going to have everybody puking, because the frame rate isn't high enough.
Native 120 hz games could be really, really awesome.
Certainly, the graphics will have to be toned down to achieve it, but who cares, if the experience feels good, I think it's better for the long-term success of VR.