Yes, it certainly looks clunky. Yes, it is in a very early stage. But when push comes to shove, AR in some form is very interesting. This largely requires video overlay rather than a separate screen off to the side, so there is (at least initially) going to have to be some kind of glasses. The difference is that a separate screen distracts, while an overlaid augmentation focuses attention. This could be very interesting.
"leapfrogged Google's Project Glass" & "show a relatively crude prototype" Not sure how these fit together. The hype of leapfrogged seems to be way overstated. The chip may have potential but it's unclear to me how it is leapfrogging anything. It may or may not even be viable for a real world product.