I took a bunch of images and aligned them.
I then moved the object into the center of the plane because it was slightly offset.
Now I did a normal detail reconstruction (Screenshot 1) and then simplified the result (Screenshot 2).
The simplified object consistently shows up outside the bounding box back around the position the original alignment put the object in (height above plane stays the same, rotation also stays the same).
I am using the new simplification algorithm here.
I think this behavior would classify as a bug.
Project file and images: https://dl.dropboxusercontent.com/u/25588164/GaneshaGarden.rar.
The images are stills extracted from https://www.youtube.com/watch?v=e8KQSpJZm8E.