Played on PSVR a bit. Yes, there is smooth movement and turning if you like. I turned on smooth movement, but kept turning on “snap”. It feels just fine. Interface is pretty well done in VR and I found myself getting acclimated pretty quickly. The VR tutorial is clear and easy to follow.
I managed to get my ship repaired and left the starting planet. It was initially a stomach-churning experience because I didn’t realize the flight controls were set to “down is down” by default and I was pulling back on the virtual stick to climb. Once I had that fixed, I got a lot better at flying. It’s still going to take some getting used to, but sitting the the cockpit (or heck even standing next to your ship) is very cool.
So yeah. It totally works in VR. Probably looks a lot better on Vive or Occulus, but since PSVR is the one I got, it’ll have to do.