Photo Blending: One possible use for this application would be to mix parts of photographs together. For example, if you wanted to enhance the sky in one picture by fading-in the clouds from another.
Edge & Frames: You can also use this program to quicky apply edge effects using various image masks. The background could be a plain colour or another image/texture.
3D Texture Maps: The original purpose of this utility is to help 3D users build texture map variations without the need for more complex editing software. For example, you can use it to smoothly blend different skin textures for your Poser characters using gradient masks.
Of course you cant create any new textures or masks within Image Inc. at this point, you still need to do those in your chosen image-editing application. But for anyone who already has a range of ready-made texture maps in their collection, then this utility will help speed-up the process of making new variations.