The obvious - Quality will in no way match a photobooth... BUT... will a bride even notice or care? It's a novelty.
Would you include it as an upsell for $200? instead of a $1000 photobooth?
Personally, I can see this catching on majorly. Many of the brides I speak to WANT a photobooth, but end up not getting one when they realize it's $1000. If they can get one for $200 and have a bunch of iPad quality photos to put up on Facebook or in their wedding album I do not think they will care about the loss in quality. They are used to iPhone photos.
Another advantage... I could easily set up 3 or 4 of these things. Shit, we could put one on every table! Well, maybe not... They would walk. Whatever, food for thought though!