This peticular topic has created quite a stir among several of us who belong to a video editing group on Yahoo. While the technology is currently being developed for photography, it certainly could eventually find its way into video.
Initially when viewing the website with the developers examples, I pushed it off as webtricks done with flash and DHTML. After further discussion and investigation, the technology actually involves a special modified camera and special software they have developed. For me it was worth eventually digging a little deeper.
So what you see on the website, is just a representation of what they are developing. You have to dig into the press releases and other areas of the website via thier links to discover the finer points of the technology.
So if your a photographer, you may want to check this out. This has the potential to turn even the worst shot into something to be proud of.
Tip: In the gallery, click on the images to go to the larger view. They have a slider you can manipulate the focus on the right side of the photo.