Ever wanted a floor plan for your home? Just wave your phone around.
* Visual annotation
Add direction overlays, see the plan for a play your team is executing on the helmet HUD, highlight "dangerous"(weaving, too fast, whatnot) drivers on the car HUD.
* Integrate sensor data to extend human perception
Add an IR overlay. Sample sound across the room, do a volumetric display of noise levels. "see" the strength of your WiFi signal.
* Image post processing
You have a 3d map of an area, plus pictures of all textures - rearrange to your hearts content.
* Alternate Reality
Completely change the look of the world around you, just because you can. (Semi-useful application: Interior decoration. See that couch right in your living room before you buy it)
There are tons of applications there. It mixes the "reality" of physical space with the malleability of the digital space.