Wow! What a cool idea. I am highly impressed. I have nothing substaintial to say about the algorithm, but I think some psychologists might find this algorithm very useful in the following situation: in order to find a brain area that is activated by viewing human faces (or objects, or anything), psychologists usually do a two block experiment, where in the first block you present the subject faces, while in the second block you use some non-face stimuli. The problem is that the non-face stimuli need to have very similar low-level strcture to faces (for example, average spatial frequency, color histogram..etc.) A simple way is to scramble the human faces. This however, introduces grid-like artifacts. It seems that to construct the non-face stimuli, you just treat the face images as textures and synthesis them. Can't wait to try it.

The other cool thing to do is to synthesis musical textures using this algorithm. Seems like a cheap way to generate some "new-age" ambiant music (as if they are not cheap enough already) or "sound-scape" a la Brian Eno and Robert Fripps.