Gotta, say, the barrier between you and other people by having a headset obscure most of your face, sure feels strange, as far as human interactions go. They really haven't innovated at all in that regard, despite the promises of the virtual eyes at the front. I can't see the technology becoming ubiquitous in daily life, until it's nearly seamless.
Oh yeah, no, I don't think anything virtual will ever make a conversation with a headset on seem natural. The best form factor I can picture is some sort of smart glasses, smart contact lenses, etc. Basically, as little obstruction as possible. Doubt it will happen anytime soon, though it is a shame development was stalled after Google Glasses' flop.