An impressive demo. I have Photoshop CS4, which has very nice tools for doing similar types of modifications, but not as easily or as intelligently as this content awareness tool. It would be nice to have, but given the upgrade costs, I'll probably stick to CS4, which is quite powerful enough for my needs as a non-professional.

Can photos be used as evidence? I guess that's a legal question that I'm not qualified to answer, but I suspect that photographic evidence must now be subject to a much greater degree of challenge to verify it's authenticity than in the past. I'm not sure how sophisticated the tools that law enforcement agencies (particularly the FBI & CIA) use are, but I would guess that they can spot amateur modifications easily & that it would take extremely careful & precise work to fool their experts, if it's possible at all...