At Siggraph 2014, Microsoft is demonstrating a method to convert first-person videos, (e.g. captured with a helmet camera during activities such as rock climbing or bicycling) into hyper-lapse videos that effectively merge time-lapse segments of the video into a single video that looks like it was created with a smoothly moving camera. The results look great and are clearly useful for youtube, vimeo and other action video sites as well as consumer camera. The challenge with consumer cameras is that the rolling shutter (used in almost all modern video cameras) causes a variety of wobble artifacts. (Note: that these artifacts are useable for video to audio applications to capture sound – even through sound-proof glass!)
The following Microsoft video does look great.
Click here for the paper