It's pretty trivial to write on-the-fly image processing using an existing graphics library. And given that the image can be cached and served from disk and a CDN, it can scale incredibly well.
Having said that, the features that they support is impressive, the API is intuitive, the speed is great, and you can stick your own CDN infront of it (or use theirs, which is actually Fastly, I believe). The founder, Chris, is wicked smart...this is really more than just a wrapper around GM.
This is why standard markup-based responsive images (picture and srcset) are such a big deal.
Imaging is completely different!