The idea of augmented reality is really cool but the way I see it is there are two possible flaws with it:
a) there is still a hit and miss nature to mobile internet coverage - which they would definitely need to utilize to get augmented reality into mobile devices (well duh! G talk about stating the obvious)
b) the cost. Advances in technology are rarely driven by anything other than someones desire for profit (after all neither Apple, Microsoft or Intel [ other technology companies are available] are exactly charitable non-profit organisations are they) and that means that there will always be a hefty price tag on new tech. The more companies involved in getting the service to the user the more expense to the user. It's going to be a while before the bundle becomes enough for people start to look upon it as a convenience rather than a luxury.
All that said.....I WANT ONE!