Has been around for a while and will generate 3d models from regular photographs. Obviously, laser scanning is going to be much better for precision work and cutting down on the amount of post-processing work (less noise and higher resolution), but I doubt that photos can be totally replaced (within reasonable cost limits) when it comes to surface "texture" mapping (by "texture", I mean in the sense of a colour map rather than an actual texture, obviously).
While it's nice to see this new project, I think it's unnecessarily restrictive. Sure, there are plenty of applications where you just want to scan in a 3d object, so having a controlled shot (such as with a fixed camera and turntable, possibly with a set background for calibration) makes sense there. In fact, these kinds of object scanners have been around for many years. But they can't handle lots of real world scanning tasks that would also be nice, eg, scanning room interiors and larger objects that can't physically fit in the control frame like furniture, vehicles, etc. Being able to track location as you enter an object's interior would also be pretty useful (think of the opening tracking shot in, IIRC, Vertigo, for example--the one where the camera tracks through a sign and into a building).
I think that latter kind of scanning (of larger and enclosing objects) is much more interesting from the point of view of developing new virtual reality and augmented reality applications. It's akin to the shift from still photography to films, with the ability to move around in space and time. Think of robots that can locate obstacles (or goal objects) in a 3d space, or terrain/object mapping based on aerial video recordings, inferring an object's motion relative to other scene elements, or even just as a quick and easy way to knock up quick scenes for first-person shooters (eg, Runtfest map for Quake 3) or 3rd-person interactive puzzle games (modern versions of the old Monkey Island style of game). Digitising small objects is all well and good, but it's really more of a time saver than a game changer, IMO.