I don't care for Facebook as a company. At all. Why would I intentionally give them money for anything?
There will be tons of competition in this space. That is, if it ever heats up. There is no barrier of entry for dozens of companies that already make or buy cheap LCD screens
There is a lot more to making a good VR headset, than simply having a good screen. Oculus and Valve have done a ton of research into sensor fusion and motion control. You really want to move the latency below 20ms, and that is an incredibly difficult task to accomplish. Oculus has done a lot of ground work, involving the streamlining of different graphics engines' rendering pipelines, such as Source, Unreal Engine, Unity, CryTek and others. Carmack and Abrash is a huge part of this.
and have the muscle to make awesome looking designs for the hardware as well. Oculus looks purely functional. With 1/10th the amount of time in the public eye, the Sony Morpheus headset already looks a billion times better.
That's bad news for Oculus, especially now they are stuck with one of the least trusted companies in the US.
SONY's headset is not meant as a competitor to the Rift. It exists on its platform, and the OR exists on its platform. In my opinion there's barely any customer crossover. Considering the technicalities behind driving a good VR experience, I cannot imagine Morpheus delivering anything special. The PS4 is simply too weak.
All that said, SONY has been working on Morpheus for supposedly three years (they've said this them selves) and they had existing cutting edge HMD tech to work off of, which indeed was part of their initial prototypes. No other companies really have any of these advantages.