If the goal is to connect peer to peer with a small group of people you know in person and can trust, I see great potential. People congregate in small groups. Facebook friends, Skype contacts, etc. The advantage here is that third parties like Facebook, Microsoft and a gazillion advertisers are not involved. If it's small like that, it's doable as an overlay without using wireless as long as at least one person has a reachable IP and can act as the keeper of everyone else's address info.
If the goal is to create some sort of www replacement that must scale to global internet sizes, where any stranger can connect, and where kids are allowed to do all the things they're not allowed to do legally on the www, I see big problems.