Yeah I am with Mark here - not true at all. My
ViewingDale does just this too. As does Celestia and to some extent MapTool and I believe even CC3. Whilst I agree that there is a limit on the zoom based on the resolution of the photo its also true that there is a limit on detail with vector graphics as well. Ok so lines stay sharp but since were talking specifically about a photo then were talking bitmaps.
I have photo albums and holiday snaps and all sorts of setups where I put my photos into it. I put photos of characters onto character sheets and into dungeons as well as making my own birthday cards, commercial art, etc - loads of stuff like that. I got plenty of demos
Video Demo
http://viewing.ltd.uk/Temp/CG/VD_Dem...gDale_x264.avi
Picture demos below.