One of the interesting features - and I don't fully understand it - is an oversampling process that provides loss free zooming on a 5 megapixel image.
Clearly the camera wars are at work in the smartphone market. This may be where Nikon enters the market with some sort of smartphone. The concept of oversampling can be used in a number of ways - including extending dynamic range or extending focus. If you can do it in software, they can move the software to the phone.
Down-rezzing is known to reduce noise, and you wouldn't get that benefit when using the crop-tele.
An undeniable paradox: To think that there is any such thing as an absolute rule is at worst naïve, and at best, shortsighted. There is no such thing as an always-true, all context- or situation-salient, absolute rule that always holds true including this one!
I'm not sure of what they are doing. But I can see the ability to capture and assemble multiple images and then combine them in software. Nikon does this with a blank frame for long exposure noise reduction. If you extend that idea to exposure, you get in camera HDR. It sounds like this is a composite image of some sort done in-camera.
In any event, I'm interested in hearing more.
The resolution on the sample image is pretty impressive.
High pixel counts aren't new to Nokia phones. The Pureview 808 had the same sensor about 18 months ago. As a natural sceptic, my first thought was not how good it would be, but how bad. Anyway, here's a link to a full size image -
At $299 I expect ATT users will be very willing to give it a try. I liked the suggested grip and the Windows 8 interface. That probably translates into some great post processing options in the device. The term in-camera seems to understate the power of this tiny device.