In regards to the specific UI concern around it feeling claustrophobic, I can see that but I feel like there are many use cases where focus via constraints is very useful. Analyzing abstract ideas into a real thing can be powerful at helping humans see the connections and hidden relationships that are sometimes difficult to see in the digital realm.

That is essentially the AR value proposition in it's entirety in my opinion. Meeting the human experience half way, so we can use our immense spatial reasoning skills in an environment that supports them.