Canpages, the upstart challenger to the Yellow Pages, has scored another minor coup with their Canada Eye app. Starting Monday, the app will be available with an augmented reality feature dubbed "the eye" which uses the iPhone 3GS compass and GPS functionality to overlay labels in real world images.
Simply open the "eye" portion of the app and you get a camera view of your surroundings. GIve the phone a second and different tabs appear with corresponding lines indicating distance to the desired location. You can specify by bars, restaurants, gas stations, coffee shops and any number of other common spots.
I did find that the app had trouble finding the store or restaurant immediately in front of me, but if I'm relying on an app to figure out what's directly ahead of my face, I've got bigger problems. The original functionality of the app remains intact, with lists and maps available alongside the eye feature, and directions to your chosen landmark from your current location.
To download the app (on Monday!) click here.