To me, it is intriguing as a toy model for how cells are able to grow into complex tissue and organisms based only on local information, and how they are able to repair and recover harmed tissue.
Of course, this is as close to cells, as neurons from neural networks are to real neurons. And I have no idea what it could be applied to (inpainting/outpainting?), but it’s interesting as exploratory research.
Texture sampling retrieves pixels by coordinate, while NCA grows them from local rules with no global lookup. The weights are actually ~3× smaller than JPEG-compressed texture maps, so it's not just memorizing the image either.
The more interesting part is that it's a dynamic process, you can damage the pattern while it forms and it repairs itself.