For all of you who thought that the compass inside the iPhone 3GS was just a waste, think again. We’ve seen some apps that will be making use of the compass in ways you never thought possible, and one such app is New York Nearest Subway. Developed by acrossair, New York Nearest Subway is best explained as an augmented reality app that overlays information on top of a real-world view. You pull up the app, and the camera view is shown, with information telling you about which direction to walk to get to the nearest train station. It is truly genius. Hit the video above to see it in action. It’s not available just yet, but once it is, we will let you know.

You use this app alongside Exit Strategy NYC, and you are golden.