HP's Halo conferencing system had several studio quality cameras that would change the video feed based on who was talking. There were also specially placed mics on the conference table to keep audio crisp. The video quality was impressive, however you had the same issues that you have with current web-cam based systems. Eye-contact was non-existent. While the camera placement was above the middle-top of the LCD screen, you'd never feel like the person was making eye-contact with you unless they looked directly at the camera. I had several team meetings in Halo rooms, and for the time, it was the next best thing to having a meeting in person. It also worked well for groups of 4 on each side of the link.

From watching the video, Google's conferencing setup is creating a 3D rep of the people talking and adjusting rendered view based on where the participants are seated. This is blending AR with videoconferencing. It would be interesting to see how their conferencing system works with multiple-people on each side. I know the video had a mother and baby in one segment, however is the 3D rendering based on the eye-level of the main participants?