I guess they have taken one of the upscaling chips used in Projectors / TV's / AV Amps and put it into a HDMI Cable to make it a separate. Neat idea really. Saying that, who's to say that an Amp with great upscaling can't do this already for a few bucks more and with all the other benefits that comes with an amp. Or if you have a high end TV then set the amp to passthrough and let the TV do the upscaling. What I am saying is, you could already have this in your equipment but have never turned it on or set it up for optimum results.
As for low res VR (GPU->HMD) then yeah it's an interesting gadget with that 1ms input lag overhead. And if its in the cable, even better as you can upgrade the cable when better versions come out.