Indeed you can set one up to an extent. The products you are referring to are known in general as CCTV's in the assistive technology/low vision community even though they don't necessarily involve a television anymore. The one thing to keep in mind is that the purpose built and sold products such as the ones you linked to are built with specific features such as contrast enhancement, color adjustment, (and more I'm sure I don't know of), that are effective in helping people with various types of visual difficulties. For example, they can switch a book placed in front of their camera from black on white to display on a screen as white on black, or change it to red on black, etc. Perhaps your girlfriend's grandfather's doctors or specialists could say whether those types of things or other features that these types of purpose built devices have would help or would be able to extend his ability to read printed text. Many also come with a table that slides in the x and y directions to make it easy to move a book around. A large smooth table can work similarly, but it's not as convenient. The other thing to realize is that the reason those devices are so expensive in many cases is that they are built for one purpose and thus are able to qualify for health insurance coverage. That's an unfortunate feature of most health insurance, but they don't want to pay for general purpose devices like a computer, even if it could be used with built in screen reader software like on a Mac (VoiceOver), because that computer could also be used for general purposes. So the result is much more expensive single purpose devices. Go figure. But as explained above, in some cases, they come with features that would either be difficult to duplicate in a DIY solution, or would take quite a bit of research to find out what features are best for a given condition. Maybe your girlfriend's grandfather would qualify for insurance coverage anyway. In this case, given that his condition is degenerative, perhaps, a DIY solution is better if it can work, if it would be cheaper.
Another option is to consider screen reader software such as VoiceOver that comes with Macs or JAWS or WindowEyes that can be purchased for windows. JAWS and WindowEyes are more serious, full screen reader solutions. A screen reader is certainly not an easy learning curve. They replace the standard computer navigation with an entirely new keyboard (and mouse work arounds) and audio based one.
Another option is custom Audio book creation. You can build a DIY book scanner diybookscanner.org/ and ocr any book or page, then use text to speech software to create an audio book. With custom voices they can sound pretty good, though it takes a lot of work to clean up the text input to get nice clean output.
People have already linked the
KNFB reader software, which is worth looking into. It's pretty slick, I've seen it in action. It's pretty well optimized and runs on a Nokia cell phone.