Here's a very cool augmented reality demo video from the Tangible Media Group at MIT, which shows off some impressive collaborative creation applications; while watching it, however, I started thinking stuff like this:
Tablets are destined to largely supplant desktop and laptop computers, and in a certain sense, the touchscreen and two-way camera makes them ideal for augmented reality applications. At the same time, a tablet almost by definition requires you to hold the device in your hand, which really isn't feasible beyond a minute or so. And the screen itself is on the small side, which will limit the kind of AR applications you can do on it. I'm starting to think laptops will still be central to augmented reality, especially when you match it to tech like this Kinect-style camera control.
Anyway, full Tangible video below!