Has anyone seen this yet? I just saw it on a tech news site I read every morning.

More about Blokify at http://blokify.com/about

I would imagine, after a while they will make the blocks smaller, for more detailed prints.

I don't see why they couldn't have a zoom feature on the app to let you basically fine tune the details using blocks that are as small as the tip of a pen.

They allow you to print using their service or send the design directly to your own printer.