I wish one day we can have a game like that(minus the dying irl part). Unfortunately VR in its current state only does vision and 3d audio in a wonky way.

The concept of intercepting nerves sounds bordlerline impossible to me, but what does sound possible is tracking muscle impulses, and restraining the user in some way to prevent themself from hurting themselves IRL when playing. I imagine VR arcades could handle this well.