The 40 Best Augmented Reality iPhone Applications http://www.iphoneness.com/iphone-apps/best-augmented-reality-iphone-applications/ has some interesting examples of apps that have been developed which incorporate augmented reality.
Augmented Reality Possibilities
I saw this gentleman present at the ACU Connected Summit in February this year and thought it could be very worthwhile to follow up with him. Not only were students experiencing art, but suggesting ways that the experience could be enhanced for others through use of augmented reality. Some very intriguing projects were the result of this approach.