Having checked out the Oculus Rift at CES, I came away pretty damn impressed with the technology. The people and I talked about what applications would be best fit for this type of technology and we all kinda agreed that FPS games might not be the best thing to use these on. The consensus was that driving or flying simulations were going to benefit most from the Rift.
Well, this video might have a little something to say about that. Here's a demonstration of the Oculus Rift with Half-Life 2. Notice how the gun's aim is independent of where the person is looking at, unlike the locked aim using mouse and keyboard where all your bullets go into the center of the screen. It looks pretty awesome and now I'm really excited for when the Oculus Rift comes out so I can try it too.