I follow Joomla since 1.0 and have a dedicated server running debian and really need to be able what this extension propose.
It doesn't work out of the box, but if you google imagemagick you will find support to install imagemagick which is needed and also you will find link to install imagick for php.
Example : On debian, I just do the following command line
apt-get install imagemagick
apt-get install php5-imagick
I install the commercial plug-in (10$) and activate it... the rest is just explain above
I didn't try on classic hosting providers, but as it is said, you probably be able to make it work with a little effort.
Thanks to those developper and especially Satish who have made this plug-in for joomla