I think the more interesting aspect of AR will be the ability to develop novel control and feedback apps similar to the way a keyboard is different than a touch screen.
The winners in the AR race will be those developers who can create engaging experiences rather than novelty experiences with a very short shelf life.
The appeal of AR over VR is you don’t have to isolate yourself from reality with hardware like VR goggles. Since so many people spend so much time starring at their phones while ignoring their surroundings, AR might be a way to integrate social media interaction in novel ways. Imagine a group of friends at a concert who augment their experience with an app to include themselves and the band that goes beyond traditional videos. They could create an experience of sharing the same space when they’re connected remotely.
How about AR apps that monitor something in realtime and take action in response to certain movements?
Yes, the power of the newest iOS devices and iOS 11 will open up a wide array of creative options for the imaginative who can draw upon design and empathy to engage people.
How about remotely controlled hardware which responds to AR controls, rather than being limited to anamorphic 3D models on a 2D screen, you could translate realtime movements to control a robot by moving your body and see the effect it has on the screen along with readouts from sensors. Similarly you could have a drone with a camera which you control by your movements in the space where you are in realtime.
Combinations of AR and VR might be interesting to create immersive environments where networked participants move around in their space as characters in a stage play environment overlaid as a skin on their in real life environment.