How about people focus on making games with better graphics and story,and forget making games that you can play in some glasses while walking to work?
Why not both?
It's not like AR and good graphics and story are mutually exclusive. In fact, I don't really understand why one would have any effect at all on the other.
Personally, I think AR is very interesting as a concept, but I'm constantly disappointed by any demo trying to implement it in practice.
Seems we need way better sensors and a lot more image processing power before it becomes really usable in game development, more then just a fancy tech demo that is fun to play around with for a while until you get frustrated with it losing synch with the physical world all the time.