I am aware people use it, but its only a partial solution that introduces new issues. For certain users it may be sufficient but even if you ignore the latency and compression issues, being unable to have multiple headsets adjacent makes it an incomplete solution if the goal is spreading the technology to new users. Even multiple WAPs won't get around the bandwidth congestion.
On-device reprojection/ATW lowers the bar for bandwidth and latency considerably, and many of us spend hours and hours with VR streaming wirelessly.
Separate in-room WAPs would be the only real recommended modification for multiple vr users in the same building.