Hey all,
As the developer behind ARf I'm excited to see this discussion

I want to clear up a few things though...
First, as a few people have mentioned, this isn't new technology. The only new thing here is putting it on the iPhone. Sony has been doing this with the EyeToy, and the new FLARToolKit has really opened up desktop augmented reality (using your computer's webcam).
However, what we're excited about here is
handheld Augmented Reality (AR). The phone becomes a window to another world, which you can explore much more freely than you could with a fixed camera. Again, there are other small devices that will let you do this, but the iPhone is something of the "Holy Grail" in the mobile world at the moment. Putting these apps on the iPhone would be a great way of getting more people to think in terms of AR.
The video you see here uses an older version of the SDK. There's no reason these apps shouldn't exist now, except that the functionality required is in private rather than public frameworks. We can only hope that Apple intends to make any new video capabilities part of the public SDK, so that developers can finally explore this exciting class of applications.
Thanks for all your feedback! Hopefully you'll be seeing more apps like this later this summer