Augmented reality is such a hype nowadays. It is a -not very new- research area where the goal is to utilize computer-generated data and overlay that data onto physical environment in a meaningful and blended form. Although it sounds "very cool to be common", it is very likely that you experienced it many times especially if you are watching football matches on TV.
A portable device which has; GPS to sense its location, a compass to determine its direction, camera to capture real-world data, enough computing power and finally a screen to visualize output seamlessly sounds to be the ideal for utilizing AR technologies. Those devices are already being sold at reasonable prices in the stores. Since they have phone functionality as an addition, people mostly call them as mobile phones though :) Here are some apps worth watching:
acrossair on iPhone 3GS
Wikitude on Android G1
Sky Map on Android G1
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