When I saw this posted late last night, I was pretty excited since I have kids, but then realized it's just determining the basic idea of what it sees in the photo, and then drawing a new image from scratch that has those elements. What I wanted is something that takes the original photo and removes things from the image until we're left with some basic line drawings, so that the people in the coloring book actually look like the people in the photo! Their examples very obviously show how different the resulting image is from the original. If Google allowed you to search by saying "Find me a coloring book image where a dad is sitting behind 2 kids with his arms around them, and the daughter is on the left and the son is on the right" then we'd end up with results almost as good.
I'm no Photoshop expert, but someone else in this discussion pointed out that Photoshop has some filters or other tools that do edge detection and can yield much more accurate results. If the techniques could be replicated in a SaaS then you'd have a much better product. Of course, if it could be done in a desktop Mac app or an iOS app, I might choose that for privacy reasons.