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Mmm real images have a very high number of NxN patterns, and copying images with large structures won't work out well when only considering local similarity?

It can and has been done:

http://ddunleavy.typepad.com/photos/uncategorized/2007/10/28...

Seam carving is cool too, but it uses a completely different algorithm.

The time and memory complexity are pretty severe with this method.