A blurry distinction between the virtual and the real world

Greg Lastowka posted a great reflections on Terra Nova:

I think it's clear that the future heralds an increasing collapse of any easy lines drawn between physical and virtual spaces. The collapse is well underway, and I'm not talking metaphorically about eBay economies here. When I see things like Google Maps, A9's Block View, RFID, geocaching, Bluejacking, and Catch Bob, it isn't too hard to spot the fact that there can be, will be, and are currently increasing synergies between real space and virtual information spaces.

If you think about alternate reality gaming (the blending of "real-life treasure hunting, interactive storytelling, video games and online community ") it's definetely true! Greg goes on weondering about relevant issues:

I think we can safely predict that the importance of the tangible information in real space will continue to diminish -- posting a virtual signpoint or advertisement will be as effective as -- perhaps better than -- creating a real signpost. One question to ask is how we'll all feel about this creep away from the physically visible and toward the virtually important.  People seem already annoyed enough about how those talking into tiny cell-phones disrupt standard social expectations. What will they think of people playing pervasive games in real spac?

Another question would be: what will people out of the game/experience will think? Will we encounter another level of digital divide? I can see that since our CatchBob! game is played in public space, there are both lurkers (future catchbob testers) and people reluctant to try this experience.