rotational dynamics - Why does the video recorded by a falling, rotating camera seem to stabilize?

Here is a video of a GoPro falling from a plane: http://www.youtube.com/watch?v=QrxPuk0JefA

Any idea what is happening when the image "stabilizes" around 0:35? I think it is because the camera's tangential velocity approaches the speed of the GoPro's rolling shutter.

Follow-up question:

• Why is the image skewed with the left side skewed "up" and the right side skewed "down?"

A challenge:

• Find the axis of rotation (with supporting diagram and explanation of how it was computed).