There are definitely people working on it, but I don't think the resolution is going to be there for text editing in the first (or even second) generation Rift. That said, take a look at these: http://www.reddit.com/r/oculus/comments/2hbktl/best_virtual_...
This issue is actually where the idea came from to put the text on the inside of a sphere. I wanted to make a VERY big text field, so that I could fit a good amount of text on the object at a font size large enough to read the text well. At that size, the edges of a rectangular window are so much further away from the viewer that there is significant distortion. The sphere makes for a much more comfortable viewing angle.
No, I wouldn't want to write Primrose itself in Primrose, and Primrose isn't a very big project. But little experiments with the live-coding have been fun. I'm still working out the use cases in my head. I suspect there might be more use for manipulating and visualizing code in VR--at least in the early days until resolution gets better--than straight, bulk writing code.
Ah, interesting approach! I'd been stuck thinking about it in terms of replicating my standard multi-monitor setup in VR, but without the physical constraints of my desk and the manufacturing costs of large panels, there's really no need to set it up that way. Neat!
