They won't allow to take out your phone? Good luck with them enforcing not having the phone pointing at a picture (not talking taking a picture here). Considering most tourists just breeze by 99% of artwork, I'm pretty sure most museums will manage just fine. Only a few famous pictures really have a lot of people standing in front of them at all time.
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Putting modeled and shaded objects in a REAL TIME, even interacting with the real world and you don't grasp the use case? Not sure what your not sure about the use case. The AHA Video took 6 months do painstakingly do and eventually you could reproducing it on the fly (the current demo is pretty close to that already).
I can say that many art museums are quite strict about using cameras in front of established art collections. This is why they have security all over the place watching you. I know for a fact because I used to frequent the Cleveland Museum of Art for years and staff asks you to check in your bags and coat. No cameras allowed. A sketchbook is perfectly fine because the art school was across the street ( I used to study there ). I'm pretty sure these days, the security staff will watch you carefully and make sure you don't use your smartphone and if they see a 'snapchat' sunglasses or something similar, they'll ask you to remove it.
They're not that stupid to let you off the hook.
Art galleries, on the other hand, are a bit different. It might be okay if, say, there's a reception party for an opening and someone wants to do a drone taking pictures or doing a recorded selfie, or a live broadcast online to stream ( especially around music events ).
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Does that mean it will stay a niche product?
Tim Cook calls Apple Watch "profound"
https://www.digitaltrends.com/apple/tim-cook-calls-apple-watch-profound/
You know what's funny? Phil Schiller wears one and Cook says Apple wants to change lives with it.
Guess what? Phil hasn't lost weight from using the watch. Wow....how profound.
And Cook blew 4-5 years of R&D on this Watch product, letting other things slip by. After 4-5 years of R&D, that Watch had 12 hours of battery life. While a much cheaper product out there had 24 hours worth. What if someone wants to use the 2400 hours ( miiltary time ) on the Watch and it has a 12 hour span? How is this person going to recharge in between?
Definitely not profound at all. And to this day, I'm still not impressed by the Watch for it has one glaring weakness. What happens if this person wants to switch to Android and still use the watch?
Locking a person inside an ecosystem can bite them in the a$$ long term. That Apple Watch should have been platform agnostic without the feature overkill but I could go on.