In general i think mixed/augmented reality applications that inherit the virtual reality concept of googles and mix it with the absolute user tracking have drawbacks in terms of usability.
I stumbled in the Mixed Reality Interface (MRI), no more a research project but a ready-to-buy device that implements the mixed reality paradigm in a clever way, i mean:
you don’t have to wear googles, the interface is presented on a screen (LCD in this case)
the interaction metaphor is entirely tabletop, you manipulate tangible objects on the surface and have their digital counterparts move/rotate in the artificial scene
i like the concept of the "point of view", or "user", object that moves the camera
MRI is "just" a device (the right choice), but in general, the shown applications are also very nice: smooth animations when an object is put on the surface or disappears, no jittering, and photorealistic rendering (this is good for anything dealing with "reality").
Techwise, it seems this device is vision-based (they say illumination changes can cause problems), no detail on the tracker identification system.
The company is Kommerz, there are a bunch of interesting videos on their site.
