1. A method of operation of an image processing system comprising: identifying a feature point on a first image; determining a matching point on a second image with the matching point corresponding to the feature point; calculating an offset component between the feature point and the matching point with the offset component having a vertical offset; identifying a correction field for updating the first image and the second image, with the correction field having a vertical adjustment, a zoom adjustment, a rotational adjustment, a keystone adjustment, or a combination thereof; updating the first image and the second image using the correction field for minimizing the offset component for displaying an aligned image on a device; calculating an average in-cell displacement between a plurality of the vertical offset belonging to a further plurality of the feature point and the matching point within a grid-cell; and calculating an average grid displacement between the plurality of the average in-cell displacement from the grid-cell; and wherein: updating the first image and the second image includes minimizing the average grid displacement.