I have just submitted my demo for the Mozzila Dev Derby. If you like it, please vote. Thank you!
It uses the HTML5 File Api and also uses the device orientation API. Firstly, you upload or take a picture, then that picture fades up below in a polaroid-style div. You can then move you device and see the picture move.
I also added something I called dynamic shine. This is just a diagonal white-to-transparent gradient. Tilting the device causes the photo to look like it is interacting with the light.
You can also see the project self-hosted here.
UPDATE:
I got runner up! Here are the results
