I wish they had spun it off so it wouldn't just have died within Google. It seems that any project that isn't wildly popular is just starved of talent inside Google. Outside Google with a little bit of money and a dedicated team, I don't see why this couldn't have been a success.
What I would really like was a product that was developed to be affordable, fairly open so you can easily integrate it into your own system, write applications that can run on the device without need to call home to the mothership etc.
There are lots of situations where it would have been very convenient to have access to an affordable, ruggedized, light-weight product that provides both a head mounted display, a decent quality camera and a user interface that can be operated while wearing gloves.
For instance, right now I'm involved in a project where we help build a huge piece of machinery (the size of several intercity trains in terms of size and mass). The team is spread all over the world while the building of the actual machine takes place in a backwater that takes about a 24 hours to travel to. It would be really useful if the onsite engineers could stream video of what they see while working on the machine rather than having to use handheld mobile phones. It would also be useful if they could see telemetry and parameters in the display as they work on the machine without having to move to look at the various displays. Perhaps also see the video stream of other engineers working at the same site.