We're already working on the next demo, but the one after that (let's say 2 weeks) I'll try to show what we can do in terms of protecting the public's privacy (incidental bystanders). Thanks for mentioning this.
Devices like Glass seem to be the threshold where this always on activity becomes most apparent as a potential problem. No doubt we'll be seeing more in the future, Motorola's recent always-on-ness hardware for example.
http://selfscreens.com/archives/4257/more-basic-augmented-re...
http://www.slashgear.com/google-glass-augmented-reality-demo...
Code is at http://github.com/bwhite/openglass
Project is at http://openglass.us
More to come, join our community if you want to collaborate.