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Yea. The thing is clearly still at prototyping stages, and they're probably paying close attention to what developers want to and can do with it.
I think they'll remember their iphone experience where it took a few models for it to really get going, so I wouldn't be surprised to see them persevere (thus, no doubt, the price).
After having sat with it for a while, I feel like I can see where they're coming from. They're going for the best most intuitive UI between the user and the "spatial computer". I think they're banking on that experience being novel, good and compelling or even addictive enough that people will want to use it. We shall see I guess.
The photos thing isn't their killer app for it and I think they know that. It wouldn't have been hard to implement I suspect, as it's essentially just recording the pass-through video. It's the gestures, pass-through, eye-tracking, video quality and the spatial OS that they've worked on. And I wouldn't be surprised now if there's something there. Not for everyone, and definitely not all the time, but maybe something. Or it'll be an awful flop.
Yeah I think something like this will eventually be pretty mainstream. AR seems like the future in a lot of ways. This is just an early step.