It seems to be playing on Nostalgia, judging by these paragraphs like this one:

>The dithered photos look somewhere between a newspaper halftone and an old video game. The processing is part of the fun: you watch the colors come in one by one, like a digital polaroid.

Frankly, it does seem like a very fun gimmick, but also highly impractical. But my adoration of this little thing might just come from a general longing of the low-tech, simple devices of the past.