I was exploring Oculus Youtube VR app and noticed one interesting thing. When you bring up a menu while a video is playing it kind of fades the video away to overlay the menu. If you look at this faded video behind the menu you notice that, besides it being darker, it becomes much more lifelike and pleasant to look at. Yes you probably lose some details, but somehow your brain compensates for it and it feels like the quality becomes 2x better, you are not noticing any pixelated edges anymore. I encourage everyone give it a try, it really looks better with it.
I think what happens is they are not simply fading the video away, but applying a semi-transparent chessboard-like pattern on top of it, where one fully transparent pixel goes next to 50% transparent pixel. Kind of like tv scanline effect is used to improve NES emulator graphics, only they use horizontal semi-transparent lines there, and youtube I think just uses a chessboard pattern which works just as well.
A few years ago I noticed a similar effect in Google Music, where they were applying a simple 4x4px semi transparent chessboard pattern on top of an album art to make low res pictures look more pleasant, and it worked very well there.
I think this might really work well for VR, since it currently suffers from low resolution and pixelated graphics. The trick here is to find a good pattern that works well as there are endless pattern possibilities.
A relative simple way to implement it could be to just let users use their own transparent gif patterns as overlays. This way users can experiment with different patterns and find the one they like the most, to not worry about adding pattern customization menu options.
I know this sounds like a snake oil, but if you give it a try (the easiest way is to just use the youtube menu) I think you will clearly notice that there is something to it, it somehow makes VR videos appear higher quality and more lifelike. I think it shouldn't be that difficult to implement, and it might make a big difference.
Thank you.