It seems algorithms that alter picture data to fit certain criteria are one hot topic these days. After content aware resizing, at team from the University of Tel-Aviv has written an algorithm that makes faces pretty. The algorithm basically normalizes the structure of the face and morphs the picture of the face to that new structure. This algorithm basically means that the kind of beautification that required some hand work can now be automated. Retouching that were reserved to a certain media elite will now be available to everybody. I suspect this will be in the next version of Photoshop will include it, as CS4 already has content aware resizing. You could probably do this transformation in real-time, for TV presenters for instance. Of course, like any normalization, this transformation discards data, lowering the entropy of the picture. So while the presenter might look more beautiful the resulting mix will be more bland.
Found by the way of slashdot.

A colleague mentioned a nice link to a project making average faces for different cities in the world, average faces tend to be deemed beautiful.