Not sure what your "Virtual Desktop" is, but, I have Oculus Rift, and I can do the following;
Put on Rift headset, which opens Oculus software, both on my desktop and in the headset.
In the headset, you can see the Oculus Home screen and at bottom of headset screen, you see a curved Oculus panel, with various buttons for Explore, Library, Store, etc.
You can also see the whole Windows desktop, inluding the Task Bar at bottom of screen.
If I launch LFD (click LFS, which is on my Task Bar) with an Oculus Controller, then LFS opens up as normal, but there is a transuscent 'Tracking Setup' screen overlaid, so you can set up headset position.
Using normal windows or Oculus to launch LFS both work for using Rift headset, so don't know why you would want to use anything else.
Your suggestion is #2 on list (and could also be included in #1).
As for someone who's done over 10,000 times more laps than you, has paid for an S3 license, and has been a member for over 10 years (as against your not quite 1 month) I think rane_nbg has the right to give his opinion on your post. And without being vilified for doing so.
Tried to use the 'debug HMD type' in CV1 mode, on my Oculus Rift CV1, but on the 3 attempts I made to run it, my Rift stopped working each time with an HDMI cable connection error.
Tried taking HDMI cable out of both pc and headset, and reconnecting both ends, but still same issue.
On each attempt, even after closing the debug program, still couldn't get my Rift to work, and had to go into Task Manager to close all the Oculus processes down. Also closed LFS. Once I'd done all that, re-started LFS in 3d mode, which opened Oculus, and Rift working again.
The problem with keyboard is that you can't just hold down the left or right key as the corner radius isn't usually same as turning circle of your car, so you end up tap tap tapping away, which unbalances the car. Turning car by tapping away is probably as bad as constantly flooring the accelerator, lifting, flooring, lifting... when driving in a corner.
For cars like RB4, which will drift turn a bit, it's easy to catch when playing with keys, but cars like the FZ5 and RAC usually end up spinning.
Single lap of me driving Shark C mod car at LFS LA1 Squigglywiggly3.
My original layout was slightly shorter, then I elongated it, which became #2, then slightly changed and extended that, so I've ended up with 3rd iteration.
Couldn't think of a good name for layout, so ended up with Squigglywiggly, which may well be the worst name to come up with.
2.61 miles / 4.20 km long circuit.
Car mod by henricat2006, and chosen as it's a fairly easy car to drive just using keyboard. Shark skin all my own (rubbish) work.
The thing is, that the the layout editor may have originally been thought of for car park time trial events, where you place cones, bales, etc, and people slalom, reverse into areas, etc, but that's not how most people now use them. Especially with the addition of concrete objects. Some of us may make things that are track shaped, but they're very obviously not proper tracks.
There's a world of difference with choosing objects from a select list, and placing these objects on an existing LFS track or on an autocross area, to actually designing a proper race track like Blackwood.
Give me a crayon and a piece of paper, and I can draw you a picture. Just don't expect anything to rival Michelangelo or Turner.
And, at the moment, autocross is for people with S1 license. I imagine if a track editor comes out, it will be at least an S3 license, and no reason why it shouldn't require an S4 license.
As for people asking for more. Yes, that will happen. People are greedy unreasonable optimists, with a sense of entitlement.
Attached image shows sort of objects that I was thinking of.
Imagine it as a single drop down list without the images.