Virtual Desktop already has many customizable features that allow you to work the way you're describing. I've worked in it before, and it was very immersive, though there was of course some fatigue.
You can have just one window at a time, and with a good headset, the wiggle is not significant. You can even adjust it so that your workspace follows you when your head turns.
I haven't used Windows' Virtual Desktop since the early days, but I suspect our text enhancements have improved upon the situation dramatically (when keeping hardware constant).
You can have just one window at a time, and with a good headset, the wiggle is not significant. You can even adjust it so that your workspace follows you when your head turns.