Life of George isn't your ordinary Lego game for iPhone. No, it augments reality as well. It's not quite Deus Ex: Human Revolution -- in fact, it's nothing like it -- but what it does have in spades are Lego schematics. Spend minutes creating Lego perfection... and then have the game grade you with its cycloptic, judgemental CMOS sensor.
The core of the game has you building Lego constructs from the game's in-built library, using pieces from a special Lego kit (purchased separately, until they figure out how to send tangibles over the internet). When you're done, you take a photo of result using your iPhone. George, or his animated likeness, will then grade you on your skills.
Augmented reality has always been a touchy subject with game developers. It sounds interesting on the outside, but once you start poking around with what you can do, you always hit the same roadblocks: too clunky, not accurate enough, people hate taking photos of random stuff, etc. I think having augmented reality as a complement to the game (or in this case, activity), rather than driving it, is the best way to go for now.
A video of the action can be found below.