The PS4 Neo will be insanely limited, graphically speaking. It will have 4.2 or 5.5 teraflops of compute performance depending on which one you get, and a pretty lousy jaguar CPU with eight cores all clocked at 2ghz or less (again depending on the model). To put that in perspective, the fx8350 (an AMD CPU released in 2012) is an 8 core with a base clock of 4ghz (don't have any information on the jaguars instructions per clock though).
Basically what I'm saying is, even with this new hardware, it's pretty far behind. even assuming all the games released will be perfectly tailored to the platform, it will be a far cry from what we have on Vive and Oculus.
To tie this together, the PSVR is almost hipster by the very nature of its position in the market (I recognize this wasn't your meaning of the hipster angle, but it worked as an analogy here too). By taking things way out of date and making them relevant, you are being pretty hipster in a way (take vinyl records for example). By creating a platform based off of a performance level long since surpassed, you force the developers to work incredibly hard to optimize a game for that platform in order to have at least some semblance of what the rest of VR has to offer. For small developers without a lot of man power, I can't imagine that would be an easy task. I imagine this would lead to many developers having to decide on just one platform. This segregation, while inevitable because #JustSonyThings, is not even optional in many cases.
Edit: I should probably clarify that I want PSVR to do well because it's the only "mainstream" option andI think that would be huge for VR in general. I simply wanted to point out that they put themselves in a position with essentially zero room to graphically grow.