As you can see, once the player puts on his augmented reality helmet and goggles his surroundings are suddenly populated by machine-gun-toting baddies wielding SWAT-level armour. It seems like there's no penalty for shooting the "hostages", but anyone who's seen Speed knows that's just how it should be.
This is just a demo, so no telling how long until it's viable for mass use. But you know what I think? I think this technology and Duke Nukem Forever are destined for a simultaneous release. [Nowhere Else]