Yes, AR+VR should converge into something similar to the differentiation between windowed- vs fullscreen-mode today: AR should be translucent, non-intrusive visuals overlaid atop your vision of meatspace, and when you need to sit down and fully immerse yourself into a game or movie, you would temporarily switch to VR, on the same device.

So until we have lightweight and powerful-enough glasses — not bulky headsets — everything else is just a public-funded prototype on the way to the real goal.