Wow. You're really onto something here. I know because I kept playing it until I died. My only gripe is the uneven framerate. If a low framerate is what you're going for, might I suggest at least making sure the framerate is uneven... but even then I still think 60fps would still fit the aesthetic. The arcade version of virtual-on was 60fps, at least.
Good job, really impressed! This opening level feels like a tutorial "vr simulation" for a larger game.