A recent technological break though was the invention of a fully 3d holographic video system: http://pubs.acs.org/cen/news/88/i45/8845notw3.html (video in link)
The machine works by having a laser etch a 3d image into a special polymer sheet. The image can then be viewed from any angle. The system takes about 2 seconds to draw a new image, so it is way to slow for smooth video, however, this is only a prototype, so new versions of the machine will likely work much faster.
There is discussion about industrial applications: 3d models of buildings for architects, 3d medical scans for doctors etc... however the most lucrative application is obviously entertainment.
I think that its likely that in 20 years, everyone will own a holographic TV. The trend in technology seems to always move towards blurring the line between reality and simulation, with a hologram, the line isn't really visible at all. I think people growing up with holograms will have a very different concept of space than we do, perhaps leading to shifts in thinking about physical interaction and separation.
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