It’s not officially released yet, and given Apple’s weird approval policies who knows if it ever will, but “crossAir” has created an augmented reality app for the iPhone 3GS (sorry, not on the 3G) that overlays signposts on captured video to point to nearby “tube” (subway) stations.

crossAir, the makers of the app, claim it as one of the first “augmented reality” apps for the iPhone, meaning it adds digital signs to a real-time video. It only supports the London Underground for now, and is currently being approved by Apple, but we could definitely see this coming in handy for most any major city.

via Gizmodo – Nearest Tube iPhone App Adds Digital Directions to Your Surroundings – Nearest tube iphone app.