If this could be extended to movies, the possibilities would be awesome. Just write a script for a movie, sketch out the different scenes and voila, a ready made rough of your new romantic comedy!
The program could be extended further to recycle old movies, and to replace the actors heads with new one.
I have to start writing a business plan for this right away. Please send me a message if you want to join in on this.
In all seriousness, that's part of why I find it so interesting. The software works (I use the term loosely!) on downloaded images, ie it doesn't yet include a web client that does an image search for you.
So for movie purposes, you could save a lot of time using a (more polished) version of this to prepare your storyboards - shoot pictures of your selected or desirable actors, background plates that look like your desired locations, and major props. Draw stupid sketches and voila, you have rough photoboards. In conjunction with some other imaging technologies, it has massive possibilities. There's a saying that a film (especially a low budget one) lives or dies in pre-production; the more decisions you can make before you begin shooting, the less expensive the production process is and the more predictable and cheaper your post-production will be. Sure, quite a lot of Great Art happens on the spur of the moment, but serendipity is rare while dithering is common, and expensive. Adobe, for one, is pushing strongly to bring the use of their tools forward in the production process, so that the film is sketched out before shooting takes place and directors can spend more of their time 'filling in the blanks'.
What you mention (going from this to an actual movie) is obviously not practical now, but I'm happy to say that it's being reduced to an engineering problem - the fundamental technology to do most of what you describe already exists, and it's a matter of making it usable and timely. I will venture a guess that we'll be able to do this in clunky/very expensive form by 2015, and by 2020 it will be possible to make an entire feature film this way that looks about as good as a mid-90s low-budget sci-fi film - say, Escape from LA - at home.
tl;dr although this has been presented as an entertaining toy, with thematically-organized material there's a lot of near-term commercial potential.
The program could be extended further to recycle old movies, and to replace the actors heads with new one.
I have to start writing a business plan for this right away. Please send me a message if you want to join in on this.