The Rift is great, but it's not "The Matrix." Most people can usually see the edges of the screens on the left and right sides. However it is a huge step up from previous consumer-priced head-mounts, which is why so many people talk about the immersion.
Inclined to agree. After testing the Rift DK1 for a few months in real world settings (i.e. Half Life 2 VR, DOOM 3, and plenty of other fully realized games augmented with Rift compatible drivers), the immediate limitations kind of fade, but the stand out immersion breaker is the limited field of view / peripheral vision.
I think it's something you tune out in your first run with the device, but it becomes way more noticeable as you start to field test it - it feels as if around half of the peripheral vision in each eye is obscured, and it's distracting enough that it makes me want to start playing on a conventional monitor again, even if I'd rather not be.
I guess the lower FOV meets the constraints of most modern games/engines designed for monitors and HDTVs. Though, given the high level of industry support, I'd really rather see the most immersive HMD possible and engines pushed out of their comfort zones.