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Oh yeah! There are all kinds of cool games you could play with AR.
My old school used to get really into “assassin”. Some organizer would divide everyone into a big circle but everyone was only told their connection in one direction (ie everyone knew their target but nobody knew who was targeting them. This was in NYC. Kids would pull out Rayline Tracer Guns in the subway and pop each other. AR would be a much better way to do that.
Games like Pokemon Go would be much cooler with AR.
The legless avatars seem to be mostly a VR thing.
It would be cool if you could mix the two. What if you could meet a group of friends at a coffee shop but if one of your friends was out of town you could have them join you virtually?
The avatar may or may not have legs. We could leave that choice up to the individual. Maybe they want legs. Maybe they want to be a little floaty ghost. Maybe they want to present as a talking frog.