So has anybody noticed in the PSS occasionally your Acquaintances and Passersby occasionally have a yellow or red glowing circle around them? I would not be wrong in assuming this means they are using an O-Power right?

Heh, Froakie get's a really unimpressed look in his face if you try and rub his belly. The proportions of him being a frog makes it look like you're rubbing elsewhere so the face is quite fitting...