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I've been suspicious as well about that at first, but after having tried Google Cardboard myself on a OnePlus 3, I was surprised by how accurate accelerometer powered head tracking worked. I'm sure there are specific cases that aren't covered by this level of accuracy, but overall, it works perfectly fine.

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It's not just accelerometer, the gyroscope is what makes it so stable.

The gyroscope combined with the accelerometer and the compass is able to accurately find your relative motion in 3D space without any external references (just the initial point) using simple physics. But yes it also drifts but very slowly.

I wonder if there's any way to periodically compensate for the drift, such as with video information taken from the camera or something like that? Seems like it should be possible to do this.

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