i've seen this in the X-files show and many forensics/ espionage TV shows and movies. i do not know anything about this technology, but i have worked with photoshop many years and from what my gut is telling me this is 100% bullsh*t. you cannot enhance details to a level that high from a picture that never had those details in them. i'm sure you could enhance it a bit, but not THAT much.
that would be magic and is impossible to do. when i see this stuff on TV and movies like the show Alias with sydney briskow (the young woman who plays Electra in that movie Daredevil) i am just thinking to myself how full of sh*t it is.
your example doesn't convince me because anybody can just pixilate an original and fool somebody into thinking it was a "before" picture