Amazing
This seems to be a great advance. The demo pictures were amazing. However, something seems to be missing. "Stupid" jchandshaw above actually has a point. These photos can only have one, narrow depth of field in focus at one time. What if you want to have everything in focus? There presently is a way to do this. Several pics of the same scene are taken with varying near/far points of focus (static scene, of course). Then software like "Helicon Focus" combines your many pics into one resulting in EVERYTHING in focus.
Lytro needs another step. For instance, why would I want a final picture of the pink flower in the foreground and a barely discernible woman in the background....or why would I want a final picture of her in focus with a pink blotch in front. This seems to be, at this stage, a novelty, too dependent on a computer to view the pictures...and a pain in the arse, I might add.
