Looks to me they were right to do so. Your software does not appear to be the high quality material that will promote standaloneVR as a platform. Still they offered you the option to publish on thedesktop oriented store. What is great, is that you will be able to offer your content on the platform anyway. So rejoice! It’s still possible
I think your idea best belongs on the web and not as an app. You just need to figure out how to monetize your website for VR. If you do, that will be more valuable than placing your app on the Oculus Store.
I guess the app was rejected because they are looking for standalone content on the store, content that they can sell… they are not interested in websites, even if they are cool.
And anyway, since you can publish it through Supermedium or Oculus browser, you don’t need Oculus approval for it…