Creepiest part- "it uses the camera to check for lighting conditions, and even uses the phone’s microphone to ‘listen’ to the ambient surroundings."
The auto-social network based on proximity is awesome, though. I can't wait for this and the creep factor will be gone in five years anyway since we are all moving to a more open society.
There have been some research projects which can use snapshots of the lighting and sound around you to tell which building you are located in with 90% accuracy. I.E. they can tell you are in the Starbucks and not the hardware store next door. See "SurroundSense: Mobile Phone Localization via Ambience Fingerprinting" in the proceedings of Mobicom 2009.
The auto-social network based on proximity is awesome, though. I can't wait for this and the creep factor will be gone in five years anyway since we are all moving to a more open society.