It's 2017 and we still don't have a single decent bitmap terminal.
Example screenshot from Konsole: https://imgur.com/a/D98Kl (showing https://en.wikipedia.org/wiki/xterm)
The rendering is really buggy. Images glitch away all the time, possibly until w3m issues a redraw event, but it kinda sorta works.
Some day, I'll have to dig into either the w3m source or the Konsole source and figure out which ANSI escapes are being used for that. (If someone has a link to a spec or sth, that'd be much appreciated.)
Others have also told me about Sixels, so I'll probably add support for that at least.
Try it out with one of the terminals listed in https://github.com/saitoha/libsixel#terminal-requirements