I've been a fan of augmented reality apps, these are my favorites.
Wordlens - real-time translation through the phone's camera, REALLY impressive when it works (just have to make sure you have good lighting and the text your translating isn't too weird)
Layar and Wikitude - pretty cool and work fairly well on the iphone4. Show points of interest through your phone using a combination of gps/accelerometer data.
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