This is where I think it will have the most application, though I am concerned about whether it will run into problems like the Oculus Rift. It's supposed to be entirely wireless when released and yet we know that causes problems with latency. If it doesn't stream like Microsoft claims too, it will need to have very powerful onboard hardware, which means it will be expensive.
That's going to make it difficult for consumers to get onboard, much like we saw with Google Glass.
Perhaps a few years from now it will be more viable, but right now I still think Oculus VR has the best chance of giving us virtual (and potentially augmented, with camers) reality, albeit tethered to a PC.