Playing with squeak morphic, I saw WarpBlt which seems to provide exactly the functionality I need to port an old java applet I did in 1997. WarpSketchMorph is a Morphic implementation similar to my DynFlex applet. Most fun is modifying images of faces.
You can create a WarpSketchMorph either by evaluating WarpSketchMorph new openInWorld. and choose an image with the "Choose new graphic..." halo menu item or use (WarpSketchMorph withForm: ) openInWorld.