Rock! This completely takes the ideas that other products such as Microsoft's Photo Story 3 have run with and raises the bar through the roof.
Animoto is an interesting product, from an interesting group of people:
Animoto Productions is a bunch of techies and film/tv producers who decided to lock themselves in a room together and nerd out.
Their first release is Animoto, a web application that automatically generates professionally produced videos using patent-pending technology and high-end motion design. Each video is a fully customized orchestration of user-selected images and music. Produced on a widescreen format, Animoto videos have the visual energy of a music video and the emotional impact of a movie trailer.
The heart of Animoto is its newly developed Cinematic Artificial Intelligence technology that thinks like an actual director and editor. It analyzes and combines user-selected images and music with the same sophisticated post-production skills & techniques that are used in television and film.
Despite the buzzword and PR heavy description, it looks like they're onto something. Man, they even have a press kit!