They appear to be using a clone-tool type device to erase the words, a font-and-color detector, a word (and small phrase) detector and translator, and doing it all in real time. On an iPhone.
Grammar isn't even attempted yet, but the interface is just beautiful.
The little robot "Moore" has been climbing Everest since the 60s. It started out slow, and has been going faster and faster as time goes on. From 1960 to 1996 it had managed to climb 1/10th of one inch up the slope. In 2007 it made it up the first foot. Today is it 7 whole feet up the mountain. The view is looking impressive.
In 2017 we'll be 113 feet up. In 2020 453 feet up. In 2029 we'll be 29,000 feet up, at the summit.
That thing is amazing. It seems to only be in Spanish <--> English at the moment. Imagine the day when they've got most of the world's languages on this app (probably won't take them long), and imagine using it on a backpacking trip through Asia or Europe.