On the other hand, it does look like they're interpolating between discrete frames. In their fourth example (
http://lytro.com/gallery/content/lytro_50_00090.php), take a look at the piece of confetti to the top left of the middle head when the focus slider is about 1/3 of the way up from the bottom. It has a sharp edge, but there's also a halo around it from a frame where it's out of focus.