This is... pretty seriously disappointing, if it's supposed to be the whole thing (or close to the whole thing). I'll give them the benefit of the doubt and assume that they're going to publish the rest later, and not deliberately hobbling it to prevent the public from getting creeped out by the hardware's capabilities.
Glass is an entirely new kind of device; to have good ideas I think we need to wear it and experience the world through it. The API is fairly constrained, but so is the device (eg always in the field of view). And strict constraints, when enforced for good reason, often lead to interesting products (eg Twitter).
See the work of Prof. Steve Mann, specifically "EyeTap". I understand one of his ex-students is on the Glass team, however "an entirely new kind of device" it is not. It has a heritage of ideas and implementations that are around 30 years old.
That's true, but Glass is the first time something like this has been mass-produced. It's clearly a version 1 product, even though there have been other people doing similar stuff before glass.
There's no augmented reality, but from the docs it looks like you can stream audio and video to and from a service, maintain awareness of the users location whether they're using the app or not, and push interactive notifications. About all it's missing is a HUD, which will no doubt come as soon as the batteries can handle it.
