Internal company politics and prioritization of Quest. It's possible that hand tracking will come to Rift S, but it might be a side effect of wanting to support it with the Quest link cable.
I own both and demoing my Rift on a high spec system my friends were blown away and the first question was "Can it run on my macbook?" Then thats where the idea of owning VR died for them.
Demoed my Quest and one person bought one within 2 minutes of taking the headset off, took his to a family BBQ and two more people there bought it after trying it for a few minutes.
I still enjoy many PCVR games but this is just reality.
Absolutely agree with this, literally anyone who can use the headset is able to sculpt a 3D model in Oculus Medium that resembles what they want. Same can't be said for any non-vr 3D modelling software, huge potential in the creative industries.
Still niche and not mainstream though.
PCVR is no more niche than the demographics for Far Cry 5. If you have the hardware to run a modern AAA game on PC, all you're really missing at that point is the headset. And I don't see Ubisoft refusing to make games for PC because there are too few people with powerful enough PCs. As GPU tech continues to develop and higher performance reaches lower price points, it'll also become more accessible to more people. Though you can already pay 200-250 Euros for a decent GPU now and it'll be more than sufficient for VR gaming.
High end PC is a small fraction of those installs.