> It is probably less useful today due to ongoing miniaturization of imaging sensors.

Not really. Dig into concepts called sparsity and compressed sensing, which are quite similar algorithms (not really the algorithms, but the underlying ideas).

I can't find the authors' original website, only this old wired article from 2010: http://www.wired.com/magazine/2010/02/ff_algorithm/2/

So especially with the ongoing miniaturization of imaging sensors, which will allow you to take even bigger and bigger pictures, there are issues these algorithms could solve, unless SD cards get really cheap really fast I guess.