Is the empathy machine hype waning? I feel that the growth of these two uses of VR are mutually exclusive. Each will grow as VR itself grows. And there may be an intersection where users of empathy machine content are roped in voyeurism, and voyeurism users are roped into empathy. The latter being more likely.
As content creators, it is our job to push the content that nurtures the aspects of VR we want to see take root. Given the fidelity of the technology and its pervasiveness we will see VR used in all ways, good and bad.
Bad content is inevitable, the best we can do is make the good content good enough to drown out the bad.