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If it behaved like a window you wouldn't be able to look beside or behind yourself in game, this type of setup is used a lot for sim games.
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But if you look behind yourself your head is pointing away from the screen.
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Typically people don’t use 1:1 movement when using something like this. It’s a much higher ratio so you only have to slightly move your head to look around. It allows you to do it quicker but also avoids exactly what you’re describing.
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Not necessarily if you've got a curved ultra-wide display. Combine this with some rotation factor and you can look around while still looking at the screen.
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It's not a 1:1 link with these, turning your head only slightly is enough to look behind in game.
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> The way it currently works doesn't really make sense

And yet, sim players are using it. Players want to use small headmovements to simulate large head movements ingame. It seems to work.

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Wouldn't it be much more convenient then to buy a VR headset which actually follows your head movements because it's physically head mounted? Not to mention that it provides a stereoscopic view of the scenery. I guess the price is a hurdle.
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I tried to play Elite Dangerous in VR. It is a very nice game to do that with but personally I found the heavy HMD got uncomfortable inside of a half hour, and I had difficulty reading text. It's fine for combat missions but if I want to design a trade route I'd rather just use my normal monitor.

The other problem is that I have a fancy throttle and stick with lots of extra buttons and switches. I know common functions by touch but if I wanna toggle exterior lights or something I have to look down and find a label.

For me choosing a screen + head tracking vs VR is like choosing to use speakers instead of headphones. The headphones sound way nicer and give much more immersive soundscapes but sometimes you want to have some tunes going and not have your ears get sweaty.

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VR headsets that are any good are quite expensive so price is definitely a factor I think. Plus they introduce a lot of eye fatigue and you have to wear something on your head which gets tiring.
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I have a VR headset and still prefer head tracking. It's more comfortable, and becomes second nature after an hour or two of use.
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My kid is using a webcam based head tracker with a combat flight sim of some sort. You don't want to move your head too far since you are looking at the monitor right? It works kind of like mouse acceleration where if you move your head quickly, it changes perspective further.
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Yes, this tech has long been used to great effect for flight sims. It might seem odd if you've never used it, but it turns out it's very intuitive.
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