AKA: real-time repair tool. Impressive results overall, and a fun use for AR for sure, though it seems they're not using previous frames' covering textures as hints (or not overly well). Especially visible with a heavy-noise background like where the drainage grate is, at around 1:46.

Next up: augmented reality headgear, so you don't have to see billboards while driving / hunting zombies in the real world. Or your annoying coworkers.