"Bored with the same old view of reality? Turns out there's an app for that. Now you can simply point your iPhone's camera at an area, and the Bionic Eye app will show you points of interest, subway or bus stops, and other pertinent information about your world around you."
This is the first "official" augmented reality app in the iTunes store, and while it does work with the iPod Touch, to get the cool view feature you need to have a camera on your device. If you don't, or it is an older iPhone without GPS, it will display the locations on a map. Other apps have unofficially made use of the augmented reality feature, namely Yelp, but this is the first approved app using the feature.
__________________
iPhone 4, 1.6 GHz Core 2 Duo MacBook Air, Apple TV, 2.66GHz Intel C2D Mac Mini, 1TB TC, Airport Extreme,several iPods and an iPad, 32GB Wi-Fi version. Follow me on Twitter.