> Whittinghill says this is likely a result of “change blindness,” a perceptual phenomenon that allows our perceptual system to ignore objects that we see over and over again.

Uhhh, that's not what change blindness is at all. It sounds more like vanilla sensory adaptation. Our visual system has adapted to the presence of our nose in our visual field (since it's always there), which is why we don't notice our noses in day to day life and don't notice a virtual nose placed at the same location.

http://en.wikipedia.org/wiki/Change_blindness

http://en.wikipedia.org/wiki/Neural_adaptation