I saw that. I'm not sure if it's what I would call very interesting as augmented reality, since it doesn't seem to process the image coming in at all, but rather just does an overlay.
However, having the overlay is possibly more rewarding to a user than just a compass saying "go this direction."

The articles refer to Nokia doing AR research. An nXXX they could use (one that also includes accelerometers and a compass in addition to GPS) would be awesome.
http://research.nokia.com/research/p...ara/index.html

Nokia (like microsoft) seems to be a company that has a lot of kick-*** research projects that never manage to come close to their product line. I hope that gets rectified someday.