It's a double-edged sword.

Oculus' vision was to bring VR to the mainstream. They really didn't have the cash to make that happen on their own. They were using leftover parts from the mobile and tablet industry to hack together some headsets. It was a good proof of concept, but that was it.

With Meta's backing they put VR on the map. Others jumped in on it. Without them the Vive probably wouldn't have happened, nor would WMR. Then the transition to self-contained VR, the Quest but also others like the Pico, the Pimax Crystal and now the Vision pro. I know PCVR is pretty dead now but to me it was more of a transitory phase (and I still use it a lot but wirelessly now). VR was never going to be mainstream if you needed a powerful PC to do it and with all the cable mess.

I don't think these would have happened without the meta investment. I think it was good for the industry as a whole. However yeah, for consumer privacy it's not great that it was Meta that did the investment and not someone else (except Google or Amazon which would have been just as bad)

I don't really view it as a sellout and I was one of the earliest kickstarter backers. Serious money was needed to make it fly.