Microsoft demonstrated something at Siggraph that other sites are picking up as "news." It's "Image Deblurring using Inertial Measurement Sensors." (the actual published paper can be found here). I'm not sure I'd categorize it as news, though I do highly respect the work that went into the research paper.
A very long time ago some of us began having a discussion on the Web about all the image problems that we could see being corrected automatically, and how. One of the things that we wrote about was using using inertial sensors to correct camera blur. If you know what the motion is in the capture device during image recording, you can use deconvolution algorithms to back out the resultant blur. But as I discovered when I outlined such a system back then, some of the spook agencies had long ago started using such systems, especially in those side-view aerial systems. There's a lot of prior art.
So it's going to be interesting to see what happens next. Almost certainly the Japanese companies will put full gyroscopic motion sensors in cameras soon (the iPhone 4 has one). The necessary sensors are small and cheap now. The image improvement is potentially more dramatic than VR at less cost. The question now is what you can patent to give you a little bit of intellectual property breathing room from your competitors. The scramble is certainly on.