The model basically guesses and reinvents what these diffuse pixels might be. It's more like a painter producing a picture from memory.
It inevitably means that the "camera" visually parses the scene and then synthesizes its picture. The intermediate step is a great moment to semantically edit the scene. Recolor and retexture things. Remove some elements of the scene, or even add some. Use different rendering styles.
Imagine pointing such a "camera" at person standing next to a wall, and getting a picture of the person with their skin lacking any wrinkles, clothes looking more lustrous as if it were silk, not cotton, and the graffiti removed from the wall behind.
Or making a "photo" that turns a group of kids into a group of cartoon superheroes, while retaining their recognizable faces and postures.
(ICBM course, photo evidence made with digital cameras should long have been inadmissible in courts, but this would hasten the transition.)