As discussed earlier, the degree of reality you want to preserve is up to you--the application designer. It is important to establish where your experience fits early on as it will impact how you design and also the implementation of the experience you are building. Microsoft outlines three types of experiences:
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Enhanced environment apps: These are applications that respect the real world and supplement it with holographic content. An example of this can be pinning a weather poster near the front door, ensuring that you don't forget your umbrella when the forecast is for rain.
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Blended environment apps: These applications are aware of the environment, but will replace parts of it with ...