First off, I hate the term Augmented Reality. Augment whose reality? I much prefer to term Mixed Realities. It speaks more to a blending of virtual and physical objects. With this last sentence, I give away my generation. I am part of that generation that still sees the Internet as something separate from the "physical" world. The latest generation doesn't have that distinction. So again, which reality are you augmenting?
You might have heard something about Augmented reality before. It has become quite popular for marketing. Another form of it has become really popular as an AR Browser like Wikitude. The AR Browser basically overlays information on top of the phone's camera. This is typically commercial information, e.g. nearest restaurant. The tag for that restaurant sits in the direction of the restaurant. Now that the novelty of AR is starting to wear off, people are questioning its value at all. Does it really add to the user's experience? In most cases, probably not. Does anyone care that you can hold a virtual whopper through your computer web cam? Like I said, the novelty is wearing off.
I am working on a project that plans on using Mixed Reality, or an AR Browser, as a navigation tool. I was asked, why go to all the trouble of the AR Browser and not just put points on a map. I've been giving it some thought...I actually think that navigating with an AR Browser is actually much more intuitive. As much as we like to think everyone loves our maps, and has no problem using it, the truth is people can't read maps (well a lot of people can't, at least). What's easier, find points on a map, figure out where you are on the map, which direction you are facing and which direction you want to go; or hold up the phone turn till you find what you are looking for and start walking? Some of the former can be automated, such as pinpointing your location on the map, and using the compass to turn the direction of the map. Both unfortunately suffer from hardware limitations. The compass for example is really sensitive to interference.
Yes, it is akward to hold up the phone, but it is done a million times a day for other reasons so it isn't hard to adapt.
It's easy to draw comparisons with the hype surrounding Virtual Reality in the 90s and the hype of today. Virtual reality didn't really catch on in mainstream, I mean who needs the neck strain of wearing those helmets. The problem is, these are two different conceptions of space. Virtual reality worked to bring things to you while sat in a single place. The promise of time travelling virtually for example. AR Browsers are meant to direct you to the place. I think they stand a better chance of not falling by the wayside because of this. You are taking the "virtual" wherever you go with you.