Mark is saying that Apple is rejecting the idea of people wanting to be disconnected from the real world full time. That I do agree with. People have to live their lives and go about their business. But they still want convenient access to information. After all, that's why everyone carries a phone in their pocket.
There eventually needs to be a combination of AR and VR in the same device. And there's a perfect parallel to this with what Apple has done in the audio world. Technology in the AirPods has evolved to where people can switch back and forth between noise cancellation and transparency. You can choose to either isolate yourself or simply augment what you hear all around you.
Augmented reality is like transparency and virtual reality is like noise cancellation. Everyone thinks of AR/VR as two separate or even competing technologies, but just like in earphones, they are complementary. They go together to make the tool even more useful.
People don't buy special headphones just for transparency and others just for noise cancellation. They want an audio tool which allows them to do either one depending on the situation. If it wasn't for battery life, people would wear AirPods all day long. We're almost there for our ears. And we're headed in that direction for our eyes.