Red Giant Software's Magic Bullet Grinder is a transcoder application designed for the editors to quickly transcode HD DSLR clips to Pro Res or PhotoJPEG codecs. It can also generate Pro Res Proxy files, install timecode, upscale 720p to 1080p and conform all clips to 23.98 (24p) fps.
For the explanation on how it all works, I'll let Red Giant's own tutorial run through:
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My own observations are performance based. I have a fake 4 core Macbook Pro i7 and Mac Pro 8 core i7. Comparing with the de facto champion of conversions, MPEG StreamClip, the Magic Bullet Grinder was just slow. Despite being multi-core aware, it failed to excite more than 1/2 the cores (200%) CPU activity and took twice the time to run through conversions. HOWEVER, for those who want 23.98 conforming, it's part of the processing time.
My quick view of the software is that it was programmed by the post-production editors for post production editors. You can tell because they skip Pro Res LT and HQ, only giving ProRes 444 or Standard. Most post houses either use 444 or Standard nowadays, because Pro Res HQ has little gain over Standard and is way below 444. Pro Res LT is great for short edit workflows in field, but proxies work better and are what the workflow of post production houses use. 24p is de facto for feature and web workflows, so the conforming is nice to have as part of the conversion process, vs having to open up CineTools to conform Pro Res Clips.
Magic Bullet Grinder isn't a speed demon but it does a few things many editors want, conforming clips to 24p and generating proxy files for easier editing. It is more for the professional editor's workflow which includes conforming and timecode. Is it worth the $49? For an editor who does all those things as part of the workflow, I think it is. MPEG StreamClip is still the speed demon, using all cores to crunch out video but it doesn't do conforming, create proxy files and timecode, things that a professional workflow requires. Of course there are also free apps to add timecode but that's 3 apps added to the workflow. I'm sure that Pro Res LT and HQ will be added later as an update, but I'm not sure that the processing speed will improve.
Still to be able to batch convert, conform and generate proxy files in one app is probably what many editors want, and Red Giant's market are editors/filmmakers, so it's not surprising that it feeds them what they want.