Not my experience at all. Streaming over WiFi had no noticeable latency, but I did have to upgrade my WiFi AP to one that supported -AC and have it only a couple of meters from the VR headset.
I actually expected it to kinda suck and was very impressed when it worked as well as it does.
This is on a Quest 2, not a Quest 3 however. Experiences may vary.
I'm using a dedicated TP-Link Archer AX53 (just WiFi 6, not WiFi 6E) with Quest 3 and Virtual Desktop for PCVR. Turns out the WiFi bandwidth and latency is not really a problem, rather my older GPU (Radeon RX590) is the bottleneck, struggling to encode all the needed frames in real time.
I'll mention that the single most impactful upgrade you can make to a PC for VR is to get an AMD X3D CPU. X3D CPUs really smooth out p99+ frame times which results in a tremendous improvement to the VR experience (which is dominated by outlier frame times).
In your case, with an RX 590, do NOT buy an expensive x3D processor expecting any improvement. I upgraded from an RX580 (using an original HTC Vive) to an RX 5700xt (and a valve Index) and that's the position you are in. You cannot drive a high pixel density VR headset with a Mid tier GPU from 8 years ago.
Get something that is at least as powerful as that RX 5700xt I had (I now have a 4070 super) and you will be satisfied. It drove my Index at 90hz.
What games do you play in VR? I know you say the outlier frame times were a huge problem for you but it really seems like such a small performance bump to get such a huge perceptual benefit.
Most of my VR time is in Beat Saber -- I'd have occasional, quite distracting frame drops with a 5600X that have completely gone away with a relatively cheap upgrade to a 5700X3D.
I'd personally argue that smoothing out outlier frametimes is not a small performance bump! As an engineer I care a lot about tail latency for services, and I feel like tail latency ends up being even more critical for high-fidelity gaming experiences like VR.
I actually expected it to kinda suck and was very impressed when it worked as well as it does.
This is on a Quest 2, not a Quest 3 however. Experiences may vary.