The L.A. Times (via MacRumors) confirms what TiPb heard following the release of iPhone 3.1 Beta 2 -- public APIs for information overlay of live video will allow "augmented reality" apps to make their way into the App Store.

Apple told Acrossair, developer of the Nearest Tube train finder, that the app will be approved for distribution after Apple releases version 3.1 of the iPhone software, which the developer expects will land in early September.

This time frame, if accurate, will likely also coincide with Apple's traditional iPod and iTunes event, which for the last two years has seen the iPod touch center stage, and last year also introduced iPhone 2.1.

If a camera is integrated into the third generation iPod touch, as current rumors indicate, it would make for a fairly mind-blowing demo...