It also looks like the stabilized video is magnified a little bit. Regardless, these tools are really neat and they are still in their infancy. It's good to see that GooTube still believes in user-generated content.
Cropping and magnifying the video is required for all methods of video stabilization, because otherwise you would see the edge of the original frame move in and out of view.
Are there any stabilization algorithms that use other frames in the past and future to fill in the gaps with (possibly anachronistic) data?