On the contrary, they might expand Meta's market by giving "legitimacy" to AR/VR headsets. Not everyone will want to buy a $3500 Apple headset, but might try out a cheaper Meta Quest.
I get we're no longer allowed to be critical of the tech now that Apple has directly entered the market, but some tech never takes off despite repeated attempts and I'm convinced this is one such situation.
So no, meta's play was never "groundbreaking hardware", it was making the hardware better while keeping the price accessible to normal people. Apple hasn't even entered the competition there.