In addition to cropping the frame, it warps the image to map each frame to a set of points calculated to fit a simulated camera following a line, parabola, or a filtered version of the original camera path. When sped up, the end result is not "garbage" at all because it's a path along a perfect line/parabola.
You can 2x the video on Youtube to see for yourself. The major drawback is cropping and computation time, which is where Microsoft's technique excels.
If you took the image stabilization you linked and sped it up the end result would be garbage. Different techniques for different goals.