For me the million dollar question is whether he chooses to try to compete directly with it (as in, Quest Pro 2 with increased specs) or if he tries to comfortably settle into the low end and leave the high end to Apple.

I really do hope he chooses to compete. A quick turnaround on a Quest Pro 2 with only the updates they are already shipping in the Quest 3 would put them an vastly better position and still 1/3 the price. It should be possible and it would at least set up something resembling an open-ecosystem standards based choice to balance Apple's closed proprietary approach. If not - Apple essentially has no competition at all here.