That's a good idea. People can't tell very accurately through what angle they turned. People are good at walking straight without visual cues, though. They have to force the users to make a lot of turns to keep them in the workspace.

This probably requires a gym-sized space to work well. You could have multiple people in it, if the game kept them bunched up and on the same illusory axes, so their relative positions matched in the real world and VR.

This could bring back something like LAN parties. You need a big empty space, and everybody brings their headgear.

Doesn't that require a very large empty space to begin with? I'd day it's more of a "space amplifier", it seems you can't get away from problems with open spaces and straight lines.