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If you're just removing part of the image after cutting around it with a tool like this, having the object interpreted as 3D isn't really going to be of any benefit.

The impressive thing here, imho, is the seemingly effortless and seamless transition and replacement. The background is fixed and the surface texture is stretched in what seems like real time.

Yes... I know the 3D part is the more impressive part. But I was also impressed with its ability to back fill the background.

The video says they used the PatchMatch algorithm for the background fill, and a quick search reveals that PatchMatch was developed in 2009 in association with Adobe and later incorporated into Photoshop CS5.

AFAIK, Photoshop uses essentially the same method -- half the authors on the original Patchmatch paper were from Adobe.