Seems like a pretty strong indicator that AR glasses are still being worked on, this definitely feels like one of those features Apple ships to refine before the proper hardware is ready.

I lack that confidence here, because it doesn't appear to really involve AR/VR. Eye tracking is the only feature this really uses afaict. The AR seems like a net negative here, it's just the only device Apple has that has a consistent and remotely convenient view of your eyes.

The device is large and makes the user look weird and non-present, which are net negatives.

The only benefit of the AR is showing the directional arrows, but they could get the same thing with much less weird looking non-prescription glasses with arrows sharpied on them. More realistically, anyone really using for mobility probably develops muscle memory for which direction to look to go where and then they don't even need that. At that point it's just a really expensive, really clunky camera.