I am seeing a lot of progress in some areas and will be publishing an article later this week on them. In particular both Dispelix and Digilens have made considerable progress on the "glowing eyes" issues (Dispelix all but eliminates it). Avegant has a very nice small LCOS light engine that pairs nicely with the Dispelix waveguide.
I think the biggest problem for AR is that the expectations are very high and the physics is very tough. Many physical optical features within a few wavelengths of light were diffraction ruins everything.