Jfur
That was the Sony Handycam in Nightshot mode. I have one, but it was after they fixed the problem.
Siva
Obviously, the angle of viewing is a problem, but it's better to have an approxamation of what's behind the object rather than the current form of camouflage. A tank sitting in front of a building with splotchy green and brown paint isn't very well hidden.
That picture on that page of seeing the fence is a pretty bad example. I figure it would be more effective in areas where there isn't a specific object it's trying to blend in with. It would work very well if it was just imaging plants behind the object. For example, if the vegetation changed shades of green as the vehicle moved, it would be hidden better if the color of the vehicle changed to match it's surroundings.