So - this is really cool. You have to ignore the actual editing that is shown in the video - it's pretty poor. In particular the 'retro' effect they show at the end. Technically though - it's amazing and brings to mind the sort of things we've been promised in sci-fi movies for decades.
Being developed jointly between Adobe - that little company who make Photoshop - and the University of Michigan as a research project. You can read more about it, and the research that went into it on the research website.
I'd certainly be interested in using something like this - it certainly beats Instagram and other apps like that.