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what happens with AR/VR becomes so embedded that we can no longer distinguish between what is real and what is augmented

You might enjoy Vernor Vinge’s novel Rainbows End, which offers a version of a future where augmented reality is so pervasive that people stop really caring about the difference.

I must say that my own takeaway from the novel is that that idyllic AR future is only going to work out if, as Vinge assumes, driverless cars also become a reality soon. We already have people walking into dangerous traffic situations because they are looking down at their phones, imagine the chaos if people start moving into dangerous paths because they are chasing something shown by the AR view.

I think most people would end up choosing AR that clearly marked dangerous areas. So they wouldn't chase the butterfly into the stampede or whatever.

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