I'd survive with 720p, but I don't see why there wouldn't be a retina version by the 2nd or 3rd release. Frankly it's hard not to speculate.
The gaming potential aside, I'm sure there's got to be a lot of applications of the technology. But if the media are enjoying jabbing at hardcore gamers now, shit's gonna get real if this succeeds and goes mainstream.
I mean... supercomputer processing + ultraspeed internet + VR tech... is there anything that's really missing? It's not hard to envisage people creating VRs that they don't want to leave. Can you imagine the VR version of WoW?