A report from the L.A. times claims that Apple will finally allow the tools that developers need to produce Augmented Reality applications in the iPhone 3.1 software. Currently developers working on these apps have not been able to publish them to the app store, due to restrictions from Apple. According to the L.A. times, this will change with iPhone 3.1.
"Apple told Acrossair, developer of the Nearest Tube train finder, that the app will be approved for distribution after Apple releases version 3.1 of the iPhone software, which the developer expects will land in early September"
Hopefully Apple will follow this through and these incredible Demos can become a reality for millions of iPhone users.
EDIT: (Read more for second vid)