Where is the file Elite Dangerous stores the controls

Turns out i found the answer myself. Files are stored here:

C:\Users\[Username]\AppData\Local\Frontier Developments\Elite Dangerous\Options\Graphics

First set it up for Oculus, copy all the files and save them somewhere, then set it up for your monitor and copy the files out.

Then when you want to play either using the Oculus or your monitor, just copy and replace the files in the folder or write a simple script for it.

There's a mechanic in Elite: Dangerous called "flight assist". Enabled by default, this causes a ship to behave as if it was in atmosphere. However, you can disable flight assist and your ship will behave as if it was indeed in space.

In fact, disabling flight assist is a common tactic, boosting ahead to before disabling flight assist and turning around, allowing a pilot to fire at a chasing ship while still maintaining distance.

So the real answer is that Elite: Dangerous uses a bit of both.