Although the correct description "mobile markerless tracking algorithm optimized for dual-core chips" sounds very complex, the demo shows how easy life can be with AR. For example by getting virtual service instructions of a printerembedded into the live video.
The most recent research project in the area of Diminished Reality by Jan Herling and Wolfgang Broll, Ilmenau University of Technology, Department of Virtual Worlds / Digital Games, 2010.