This Augmented Reality (AR) demonstrated by Obvious Engine is one of the better AR I have seen. In the video, you can see a Dr. Pepper can being warped in real time and it do so without distorting the surroundings.
In another demo, it is able to display rings of light around the can and interact with them. In the last demo, you can see tiny men running around the can and when the can shift, they follow the changes in real time.
Recently, companies are trying to make AR markerless. This is great as it actually opens up a whole new way to make AR more interesting. Watch this video.