The Vision Pro is also a disaster from a business perspective for Apple and shareholders. It likely costs huge amounts of R&D and it won't sell, and even if it would in 10 years time, it would replace Apple TVs, HomePods, Watches, MacBooks, AirPods and iPhones and so on. In other words, Apple would only sell one device, whereas they can now sell many different devices and make more money.
What you've just said makes absolutely zero sense. As we all know, there's a big overlap between several different Apple platforms, and they have no issue in having them potentially cannibalizing each other because, guess what, more often than not they don't; Apple users tend to buy several of them anyway.
I'm guessing it would be technically feasible for Apple to provide you with a “virtual iPhone”, “virtual Mac”, “virtual Apple Watch” with these, but they won't, unless you actually own those (and, in fact, it would be very interesting if all these devices could AirPlay their screen's outputs into Apple Vision and have it re-render them, instead of just recording and displaying their output – moiré will surely become an issue, and I'd love to see how they intend to solve that).
In any case, no matter how good this technology becomes (unless we get into neural implant territory, like the Elongated Muskrat is proposing, and actually get it right, which I believe is completely impossible considering how nascent neuroscience still is), nothing will ever replace true reality. Apple knows this, and will keep selling more tactile gadgets and even desktop workstations anyway.
Don't forget that we're approaching the physical limits – as in the limits of the very laws of physics – of traditional silicon-based processor manufacturing processes, and that Moore's Law is, what, 10 years away from outright dying? For certain workflows, especially in content production, you'll still need physical, dumb boxes, tactile tablets with pencil support, mice or trackpads for precision input (good luck getting that with air-based gestures, unless I missed something in that presentation), etc.