Alternate Reality Games and Location Awareness

I was recently asked to play a multi/cross-platform game on the UWB campus as part of a study. In it, you play as Sammy (a salamander-oid) that goes to our University and manages the challenges of every day student life. Besides having the game universe span the computer platform and the Zune mobile device, what really caught my attention was the location-based triggers. When you walk around campus, special wireless access points will trigger the Zune to turn on and interact with the user (think restless/ajax vs restful/php on the internet). I think this type of technology can have a significant impact on the immersion of alternate reality gaming. However, could it mean that we begin having trouble to differentiate between what is real and not as such realistic technology invades our daily lives?