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Photos are usually blurry because the exposure time is long because light levels are low. Depth of field is very high on consumer cameras sofocussing is pretty much unnecessary.

"A camera where focusing an image is abstracted away so that the consumer doesn't have to think about it would be a huge step forward. (Think post-shot auto-focus with optional tweaking for when the camera doesn't get it right). "

Almost every DSLR you can buy has already abstracted this away by coming up with really killer AF systems. Cheap consumer cameras and cell phone cameras have abstracted this away by always producing images with a super high depth of field. There is an inherent contradiction in what you're saying about the post-shot tweaking and user simplicity. The camera has to always get it right, there is no post-shot process for anyone other than photo hobbyists and professionals, who represent a small (though not insignificant) market.

I do agree that their technology could be slightly useful for that market, but unfortunately the major use case is when the camera has screwed up, and because of the nature of their technology, the images produced with it are of such mediocre quality that it's almost hard to tell the difference. Even in the macro shots on their demo gallery, the lens itself is so soft and the resolution off the sensor is so poor that shifting the focus isn't even all that rewarding most of the time.

The long and the short of it is that Lytro are not making the kind of camera you are talking about. Sony are with their NEX series. Panasonic are with their GF series. Nikon with the 1 series. The iPhone 4S camera totally destroys the Lytro for apparent image quality, low light performance, dynamic range, and then completlely annihilates them when it comes to actually doing something with your photos...

Lytro's camera is a graduate thesis that grew legs, went mad with delusions of grandeur and tried to con the whole world into thinking that its one basically irrelevant feature is actually revolutionary.

Gadget bloggers believed the hype because that's essentially what they're paid to do.

> You're underestimating how the technology can be used to simplify the process of taking an image for the average consumer. With the right marketing and UX Lytro could sell their camera as one that 'just works'.

Simpler than having the camera embedded in your phone so you don't have to carry two devices just to take and send pictures?

Face it if you're a pro you'd carry an SLR and if you're not you'd probably just use your phone.