It looks like they're able to take normal or HD video and detect movements or changes that would otherwise be invisible to the normal human eye. You can literally see a heartbeat through someone's skin by exaggerating the super-subtle tone changes. He says he expects it to be really useful for medical applications.
People were talking (on Reddit) about some day having it installed into Google Glass, and the point was raised that it seems to work well with subjects that aren't moving that much - since it observes by the shifts in a pixel, you can imaging it would be a lot more work doing all that AND tracking movement with precision to the pixel. But, then again, if you had asked me yesterday if there was a way to visualize someone's heartbeat pulses in a simple video from a phone in my pocket, I'd say that was full of shit too.
Yeah, because when I'm watching porn I really like to know whether the actors have pulses. :) I think it's awesome that they've made the source code public, I bet there are a lot of applications the public will think of that they perhaps didn't. Fascinating stuff.
Heh, maybe not porn (grow little seed, grow!) but I'd be surprised if it weren't applied to at least some footage of sex. It happened for MRI.