You are assuming a context which is negative for you. It may be there are ways, with sufficient settings opted in for both parties, where this may be a good thing. Finding out that person in front of you is someone you've corresponded with, or have a strong n+1 contact with through a co-worker or friend may be useful and wanted in some instances.
For example, you're at a party/mixer, so you set your locality privacy settings to show your name to those in proximity, or to those in proximity that you have a direct or once removed connection to through Facebook or G+.
Another example, you are at a conference, so you set the locality privacy filter to show your name, location, and workplace to anyone in your work address book that happens to be close by.
Finally, imagine you are on the bus, going to your good friend's house, who you've set to always see you when within a mile or so. You see a marker for her/him show up in the distance, rapidly approach, and pass you going in the other direction. You realize they misunderstood your prior conversation about meeting, and are on their way to your house, or at least, were, until they realized you were on the bus they just passed and turned around to pick you up at the next stop, which you've quickly agreed to get off at.
I think there are cases where capabilities like this could be extremely useful and desired, it's just a matter of working out the issues.
This, and a thousand other uses, are what people mean when they say "It could" with respect to AR enhancing our everyday life.