What matters is who controls the tech, not just the capabilities.

Not just nude, but any race, any age, any species. Or, make some or all people disappear from view. Not just people but everything around you will look however you want it to (or can afford to pay someone else to make it so.) Clothes will become simple, disposable leotards with markings that make it easy for AR to overlay any style of "clothes". We'll broadcast our selection to the surrounding goggles, and they can either show that, or whatever they want. Of course sound is part of it too, so your Puerto Rican "friend" can look like and sound like Princess Diana to you.

But wait, there's more. Let's say you're walking down a busy street and your boss is out that day too. He'll be able to spot you from blocks away, and even through buildings, tracking your location and following you until he "happens to bump into you." A feature reserved for certain "elites" and "officials" in society. Whatever information you have available about the people around you will appear floating around them, like a health bar. You think we have no privacy now, wait till everyone knows the basics about you and can pay to know even more, and have it appear above your head and whispered in their ear.