The distracted driving will go up for sure, but the bigger issue is distracted walking. I just hit up a Taco Bell the other night at 3 am and drove through a plaza to avoid extra lights on the way home and I spotted 2 groups playing. One sat there but the other was just wandering through the lot without even really looking around. I know they were playing because I play it too, as well as it's predecessor Ingress so I'm familiar with where all the locations are those 2 games take people to.
It's great for social encounters and exercise but both games have notices on the screen when you start it up each time to remind you to look around and be aware of the world, which sadly too many ignore.
Also on the driving note the game mechanics discourage it because if you go too fast, like more than 10-15 mph, stuff doesn't work but it's still new so I expect a lot of people to not realize it and still try.
Also people staring in their phones walking into traffic.
