What it does, is decrease the amount of
acceleration and
jerk in the motion. For those not familiar with the concept of jerk, it's a component of motion that's really uncomfortable -- so much so that it's one of the big focuses in car suspension design. One reason modern cars have better "ride" then their predecessors is control of jerk -- and it's one reason that, say, a BMW or an Lexus "feels better" than an entry level car. And it shows up in hand holding a camera as your muscles twitch back and forth trying to hold the camera on target.
There's no reason to think that decreasing acceleration and jerk won't be just as effective with a still camera as it is with cinema cameras.
Will it be as good as an active image stabilization system in, say, a Canon "L" series lens? Not likely. But it should be better than hand holding, especially a big heavy LF camera.
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