(No controllable way to "project black", meaning you need some blocking/filtering;
Passive LEDs have blocked light for decades.
(I think you meant L C D?)
Yeah, that's what I meant by "blocking/filtering".
That's solvable. So in theory, if you combined a projection-style setup like Google Glass used with a 1-bit LCD panel, you might be able to do a passable job.
Passive LCD have poor refresh rate (won't be easy to precisely track a virtual object).
And if you want to have some resolution/precision, when blocking light, the LCD needs to be on a plane that is focused, so you're back at having big clunky optics in front of the eyes which king of defeats the "lightweight normal size glasses," point of the poster above.
Meaning the LCD will most likely be used to shut the whole outside or mask a large part of it (a whole quadrant).
Not black pixels in the view. And thus any virtual layer superimposed on top of the real world is going to be a "floating luminous ghost", unless you go the Magic Leap way and use a special setup room with dim lights (or unless masking the whole outside).
Also, due to how they work (polarization) LCDs will most often block at least 50% (even in pass-through state), so will not be very usable for interacting with the real-world in low-light conditions.