Yes FLS, but did you notice the views move backwards as well, ie left goes right, right goes left? That's what I'm getting. If that is changed and the movement given more "sweep" or scale or distance, whatever you want to call it - it'll be perfect. In any case, it's a huge stride in the right direction, DCS sure doesn't have anything like this, and that's why guys with VR get SCHOOLED by non VR players in online h2h fights. Big time.
How you describe it is optimal too IMO, but I'm sure HTC knows this already, it's early days, and HT JUST said the other day he was considering this and it's here and working in an alpha level already. Now unlike VR in other flight/fight games, you'll actually have a chance to win fights in VR, again, once it's optimized a bit more. If it gets to where you described it FLS, in fact I think it'll not be a hindrance at all being in VR in terms of keeping sight of targets while using it. Very exciting. I was really surprised to see it functioning as much as it is already, very happy this is being implemented, otherwise it'd been a "bomber/etc" only deal in VR online for me, as pvp in fighters you would be dead meat vs a trackIR/non VR pilot. I flew around in VR for a couple hours offline tonight - it's going to be the future, maybe it'll take years, but it's GOING to happen IMO, so much potential, and such a fantastic feeling.