It's a novelty feature there as a sort-of fun gimmick for the Labo VR kit. Once again, Labo is targeted at small children, and it's not a serious move into VR by any means. The research on what good VR necessitates has been done, and the body of work is growing. We know that a high resolution and high frame-rate is paramount. Nintendo themselves have said that they've explored VR technology and aren't ready to jump into it yet, and I would concur, as it's still in its infancy and is awaiting mass adoption. You have to remember that Nintendo was actually first on the scene with VR with the ill-fated Virtual Boy, and have a body of research already amassed into stereoscopics thanks to the 3DS. The Switch's capabilities are good enough for the kind of lite VR you see on smartphones (Google Cardboard, GearVR), and not a serious VR product, and I'm sure Nintendo is keenly aware of that.
As such, Labo VR is just for fun, as another clever addition to the Labo lineup. It's unfortunate to see so many here looking through the lens of whether or not this interests them personally, as none of us here are the target audience. Of course it's not gonna be appealing to teens or adults without children.
The Breath of the Wild VR intrigues me, because it's likely just gonna be adding stereoscopic 3D to the base game. It will in all likelihood be 30fps, which is very much not ideal for VR. It can be done, a drop in visuals, and two offset cameras that are only having to render half the pixels, it would be less of a burden to run than it might seem. I can't imagine it would be very comfortable to play, motion sickness being a HUGE limiting factor to more involved VR experiences on any platform. But I'm content seeing it as a fun little gimmick for the heck of it.