Hello Larry,
I know I am making an appearance quite late, but I thought maybe you would still like to hear some more opinions on your project.
I like a lot your idea and it would be great if this project works out. This is a rather complex project because it tries to address a number of needs, some of them interconnected, others not so obviously interconnected.
Needs analysis is the first thing to do in order to have a starting point for a project. Assessing the availability of technology to the native students and addressing the lack of such is obviously the first step to take, as you have planned in your project proposal. Maybe the attitudes towards the technologies, and the level of understanding of what they can be used for, could be grasped at that same stage of the project- then you have a clearer picture of the challenges to face.
The "no costs" of the first stage sounds to me like a too good to be true- if students are to be involved in creating applications, you have to deal with the attitudes of the tutors/teachers, the motivation of the students to do them, and it might require additional training. I would expect some costs- even if not financial, they could be in terms of motivating, organising, evaluating. Creating one application is a project in itself. Furthermore, if the administration is to be involved (e.g. for permission), and administration is usually quite reticent to changes, you have to be convincing that this is the best solution to the problem you are addressing. What if the one last person on whom it depends to give a green light to the project, says "Native students can improve their Spanish studying at the library and thus money won't need to be spent to buy better mobile phones"? Of course there is a response to this, as with mobile phones we can do more things than with books, but these have to be stressed.
You mention something very interesting- namely, that sometimes native students feel ashamed of the culture from which they come. Involving native students in collecting all sorts of data about their native culture can be a very powerful way to revive their attachment and interest to their roots. I would expect a lot of interesting things to come out of this, as it would become possible to understand how exactly young people see and experience their culture. And for they would, probably, evaluate their place in that culture and in the society, possibly reposition themselves, who knows- I think whether in a project of creating augmented reality apps or simply gathering the material and data, the processes of (re)learning, (re)discovering, (re)thinking etc are so important. This is yet another project within the project.
Overall I find a number of interesting ideas in your project. It might be that I did not understand it well enough, though, but it did not become clear to me why you think all these needs that you have explained, will be best addressed with mobile technology and augmented reality.
I hope something of all that I wrote would be meaningful...