Yes, MechJen is able to track target and tries very hard to keep your selected planet/moon/whatever in the middle of image. But with high levels of zoom image begins to shake very rapidly, as MechJeb is correcting direction of telescope - very small corrections, thanks to long distances between your telescope and its targets even small and quick correction make image shaken. You can somehow negate this effect using time warp, but you can't change direction your telescope is pointed in time warp... But in general, yes, it works, I belive there's a way how to mitigate corrections and their effect (heavier telescope? low-thrust rcs instead of SAS? field of experiments is wide open but I had no time to experiment more, as I discovered this plugin just yesterday