My interpretation is that what they really want are Apple Glasses, but decided that AR tech just isn't good enough now, if ever (with the 'how you do put black

My interpretation is that what they really want are Apple Glasses, but decided that AR tech just isn't good enough now, if ever (with the 'how you do put black pixels on a transparent lens' problem), and so decided to instead go the route of a technically-VR device fundamentally designed to be used as an AR device.