The site where I found this app seemed rather creeped out by it.  Maybe I am creepy because I think I would actually use it.

“Unleash your inner creep with the local iPhone app that covers your screen with an “alibi activity” (i.e. a fake screen) to hide the fact you’re actually snapping photos. Just upgraded, it now rocks a password-protected photo vault, automatic timer that takes photos every three seconds, and a “quick mode” that can eliminate shutter noise, not to be confused “shudder noise”, which is the weirded-out sound people make when you tell them you’ve downloaded this app.”

Look, I happen to see a lot of weird things/people when I’m out and about… that’s one of the great things about living in a kooky city like LA.  I personally love to share my adventures by snapping off some pics, but that can often be hard to do without seeming too obvious.  The last thing you want to do is draw attention to yourself and engage with said “strange situation”.  So this “stealth mode” is quite appealing to me!
The Human Truth™ of the Barely Legal™ wave is: “I like to step over the line, but only in short bursts.”™
In my opinion, that rings true for apps like this.  Some people might think snapping pics on the down low is wrong or “creepy”, but I don’t.  I guess it’s really about the circumstance you choose to use it, I see it as a little bit “over the line” but not by much.  That’s why some people are appalled by some of the products and services in the Barely Legal™ wave, and some people are titillated.  Everyone’s line is a little different.

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