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The future of augmented reality is holographic projections into 3d space from a device in the room. Not screens strapped to faces
Is this possible right now, or close to possible?

Last I checked we couldn't really achieve that at meaningful scale.

(Or do you simply mean this sort of XR is useless until we get decent holography?)

What basis do you have for this claim? Screens strapped to faces seems immediately preferable, if only for discrete viewing. Why do you think phones won out against televisions?