I'm in no position to discuss the amount of technical wizardry in play here, but I do think the interface is really great. Look at how it overlays scanned textures on the person's hand to create a transparency effect. Neato!
It's definitely a whiz-bang application, but like augmented reality, I'm not sure how much I need it. Someone needs to figure out how to scan and print a sandwich. Now that would be something. [Pro Forma via Boing Boing]