LBS first
Feedback on the video seems to be mixed, and it should be noted that Microsoft and others have been talking about this stuff for a while. Furthermore there are already some apps available for smartphones that augment reality to some extent.
This one from UK travel and events website lastminute.com, called NRU, offers location based information on iPhones and Android devices, using the built-in compass and GPS to identify the user's location and orientation.
The video demo below was published last December, but it looks like the app is available to download for free now and we'd like to hear from anyone who has used it.
Whatever you think of the feasibility of the Nokia vision, it's certainly a fun - if intrusive - concept. The evolution towards augmented reality may well go via location-based services, which are already a reality.
