First of all both VR, and AR are still evolving. Anyone of those alone will not take over, or kill the other technology off. That's never going to happen. Especially when they both have their place. VR is designed for full immersive experiences. That is something that AR alone cannot do, like the Hololens 2. Who wants to see the real world if you are flying around in a plane? Think about it, do you want to see parts of your desk, chair, or your office around you when trying to fly a plane. The background sky would be your office environment. It just wouldn't work for something like that. This is where VR comes into play, and is made for experiences like that, and many more. What about being in space? Or being on Mars walking around? What about being inside a CAR driving around, like the game Need for Speed, Call of Duty, Half Life, and many more. That stuff is perfect for VR, and it's why they already have VR versions of most of those games already. There is no AR versions of them. That's because AR is not designed for full immersion.
It is really easy to see why Microsoft doesn't want to create a VR headset for their XBox. Especially when Microsoft has a lot of different partners who have made numerous and different types of MR (mixed reality) headsets, including different resolutions, camera placements. Right now it's up to developers to make apps (programs) to use for either or both technologies.
To say VR is dead, tells me that those individuals don't understand or have never used either VR or AR devices. To me I can see MR as the end goal. When you have the best of both AR and VR, then you can now use both types of applications. So if anyone tells you that VR is dead, clearly doesn't know what they are talking about. VR's future is in eXtended Reality or Mixed Reality, and VR applications will always live on.