Well, it was limited to mutating Cher's voice and correcting a bum note here or there. Now you can auto-correct the pitch of individual notes in a chord as well in post-production. Kind of takes the fun out of being proficient in your instrument.
Honestly, I'm surprised it took this long. I remember a film from the 80's, can't remember the name, where advertising models were being replaced with computer creations and killed off. Thanks to photoshop the "Perfect" world is here in magazines, and now our "pop" stations will be filled with "Perfect" singles performed by... no one I guess... Not that I listen to much pop anyway, but hopefully I'll be able to save my children and inundate them with the good stuff.
The Josie & The Pussycats movie revolved around this sort of device as well, only in a more evil genius sort of application, and I feel terrible for knowing that.
I am kind of curious of this program. It offers a lot of interesting benefits when it comes to making remixes of songs and creating samples. However, I wouldn't want this to be used on actual live recordings, or even studio recordings. The point of music is not to be perfect, but to be felt.
Still, the inner wannabe-DJ in me is very curious...