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I think they should focus on auto-crop video if that isn't what they're doing. By comparing multiple frames you can keep focus on a subject. But I'm sure that's already done by speed camera software.
I think this does have it's place in the photo editing arena, and is something we could see in future versions of Photoshop or even better Paint.NET. It's not something the people would use on a regular basis, but look at how easily and cleanly people can be removed from photos.
I would definitely agree with the comments that this kind of a function would be useful in an image editor. It would likely be a fairly sophisticated tool with some powerful masking options and manual adjustments. In this use it would probably be less used for size adjustment and more for modifying the aesthetics of the picture, i.e. "cropping information *inside* the image".
ps. very cool signature technology! maybe you can a separate post and tell us what you used for it.
It actually just uses our FeedBurner feed to rotate through our items. It's a feature FeedBurner offers called Headline Animator: http://www.feedburner.com/fb/a/publishers/headlineanimator;jsessionid=9AD90C566F4648F2378E19529782B35E.fb1
You can use a custom background with it, and rearrange the positiong of items. It only takes a few seconds to make after you've created your background image.
I agree, this would be good as a "Smart crop" for the paint "challenged" but for motion video - lets see how it handles crazy motion like music video. Cute concept for a thesis paper and nothing more.
I looks like he just applies a soble filter convolve and then uses the low frequency areas of the image to decide where to stretch or squash. He must have more complex ideas that Abobe is interested in. Otherwise thay would have just taken the information. Im guessing he has something really brilliant he impressed them with that has not been made public - not just this. Not that this is not interesting, it just wouldn't need to have a specialist come in to do it for adobe.
I had played with it for a few pictures. It really not very useful other than the potential of erasing objects. But the masking has to be very careful or very noticeable manipulation / artifacts.