Augmented reality applications is one way in which the iPhone is currently behind Android since, as far as I could tell from the Android for Java Developers talk I went to, this functionality already exists in Android. I wonder why this API is currently not public.
“The L.A. Times reports that Apple will begin allowing developers access to the tools they need to produce augmented reality applications starting with upcoming iPhone OS 3.1. While there have been many impressive demos floating around showing the possibilities, these applications have used unpublished APIs which prevent them from being allowed on the App Store. Apple, however, told one developer that the tools necessary would become available with iPhone 3.1.”
Update: Another interesting example of augmented reality.