Reminds me of the experience I had at the Spy Museum in Washington DC. One of the museums features is a simulated spy mission that is part ride, part video game, part community theater, part playing cowboys and Indians, and part reality TV show (sorry, not sure how to describe being a full grown man pretending to be a spy in an elaborate set).
The thing about it was that the set has to be rather small, but it is claustrophobic and twisty, so you get lost in it. Even though this was a few months ago, it made me think about how VR experiences could be made similarly. The cool thing is that the set at the Spy Museum is physically possible but still rather impressive. Virtual Sets are impossible, but take advantage of the same ability for people to be completely "lost" indoors, but not really know they are lost 🙂
Interesting technique, but it actually seems more limiting than the standard redirected walking. For example, with this system it would not allow you to walk in a "straight" line for any significant distance. It would also have problems working with static content, like a pre-built world or existing games. Still interesting, though.