Sensors magazine has recently published an interesting article called Browsing Reality with Sensor Networks.
One of the things I'm heavily involved with these days is the eSTAR project, and my work on the agent technologies which have come out of that project has been heavily influenced by the ideas behind pervasive systems.
The ideas that distributed computing power can be integrated into your everyday environment, providing a user with augmented reailty isn't new. However, with the ubiquity of mobile phones (especially in Europe and the UK) it's possible that it is now inevitable, rather than only probable. Like all such major changes in the way people live, it's also pretty probable that we won't notice it arriving either.