" .... 3D store environment was stitched together with Photosynth technology and interactive. Mundie could "walk" through the store and have a text or voice conversation with a store representative or someone, such as his wife, via his buddy list. In addition, he could watch videos and examine 3D models of the art objects, spinning them around to look at all the different parts of a sculpture.
Then he showed how a smart handheld device could be used to navigate in a physical space. Pointing the device at a particular space would show local information, such as when buses were expected to arrive or what stores are having sales that would be of interest to the user based on their profile ... "
Update: A rare serious discussion in the Second Life Herald on Mundie's talk. Will the virtual worlds (and realistic simulations) of the future be 'photo-synthesized', or will they be cartoonish like SL? Or a mix of the two?