I don't fault them for taking risks and failing (I think at the time there was still an argument for VR, could be possible they were ahead of the curve). I think the tipping point is when they're actively pushing for things that degrade user experience.

Ahead of the curve? Their "virtual meeting" software presentation had graphics that made you look like a Nintendo Mii avatar from 2006, and couldn't draw arms or legs.

I dont understand why meta didnt pair up with vrchat/gamedev/game engine dev at the time. Sure they got John Carmack, but their presentation is so much worse. Its so hard not to draw comparison with the other half baked crypto metaverse.

Meanwhile Vive Index not only have Alyx but they even bring out Portal themed toybox to showcase the hardware.

Their execution was indeed almost comically bad. I suspect it was because they had really wanted to focus on the B2B market, so they made the most sanitised virtual world possible. The overall VR direction was not entirely ridiculous, although it was clear on the ground people were much more in love with the idea of VR than the reality of it.