I recently went overboard with effects while learning jQuery. Suddenly things that took days to write could now be implemented in minutes. Extensively using my own product I realized just how annoying these effects become. Once the novelty wears off you realize that usability suffers. The glitz cuts into the users' productivity. I'm now going through my code and removing a lot of these effects.
Ever since I switched to laptops I found a new appreciation for efficient programs. Flash-powered sites burn me (literally - try placing Macbook Pro on your lap and spend 20 minutes on HotPads.com)
So... I don't buy "computing power is cheap" argument anymore. The power may be cheap, but battery time (and my skin) are priceless.
Imagine what it would do to the average user's CPU. This is a great example of "flashy" technology that looks and works great for the developer, but epically fails for normal user experience.
I get 42% but I see your point. Though it only processes when the picture actually changes and even then only for a second or less. If you set a reasonable delay I don't think the processor load would stop you from using it.
I don't have a netbook so I never test it in low specification computer. But someone complains about that's before too. With this kind of effect, it's inevitable. I wouldn't suggest you use it in a heavy site.
Is it just me or is there nothing really fancy about this script? Look at the example page of <insert-your-fav-js-framework-here> and you'll be even more surprised...?