1. A digital image stabilization method, comprising: (a) acquiring a sequence of temporally proximate image frames; (b) computing an estimated total camera motion between the image frames; (c) determining a desired component of the estimated total camera motion including distinguishing an undesired component of the estimated total camera motion, and including characterizing vector values of motion between the image frames by: (i) incrementing a counter for each pixel group having a summed luminance that is greater than a first threshold; (ii) decrementing said counter for each pixel group having a summed luminance that is less than a second threshold; (iii) determining the first and second thresholds as percentages of a dynamic luminance range of the sequence; and (iv) computing the desired camera motion including representing the vector values based on final values of counts for the image frames; (d) generating a corrected image sequence including the desired component of the estimated total camera motion, and excluding the undesired component; and (e) rendering, storing, displaying, transmitting or transferring the corrected image sequence or a further processed version, or combinations thereof.