My partner and I are working on an augmented reality modeling tool for designing simple scenes. You can use a webcam to track a marker that is used as the ground plane upon which the scene is rendered. Being able to move the marker makes it a little faster to manipulate camera position than with a traditional design tool. Other than that, it looks neat and I think its fun to play with. We are looking into using it as a simple level editor, but are open to suggestions. Here are a couple of YouTube links if you want to see it in action:

I like the looks of it :) I have to wonder if it is being used to its best potential though. I think camera control in modellers is not a huge problem. I would say the problem is more with the lack of depth to the 2D display, making 3D modelling slightly less intuitive than it is for someone to model something out of, say, clay.

Despite that though, it definitely looks like an idea worth following. I even wonder if the idea might be well put to use as some kind of gameplay mechanic, easy camera control or the ability to move objects in-game via markers might make for some interesting eye-toy style gameplay, although I'm not quite sure off the top of my head what you could do that would be different and make best use of the idea.

Anyhoo, nice work :)

Steve