They considered the differences between film and digital and decided to combine the worst aspects of each.
I love this. Instead of doing something interesting, taking a photo, and stepping out of the moment to see if the photo turned out well - just be there (and still get some photos from it, that you can't get again so you'll be more likely to keep even if they don't show you in the best light). Sometimes artificial constraints can lead to great experiences.
Seems like a weak attempt to take some of the stardom away from Instagram.
Why not price it at $999.99?
Dumbest novelty app ever.