As has been pointed out in the comments, it needs to be adopted beyond the browser. And easily.
Anyone hear of FlashPix[0]?
Anyone?
Bueller?
It was a staged-resolution format that was introduced by a consortium in the 1990s.
The biggest problem (of many) was that, in order to read or write the format, you needed to use the Microsoft Structured Storage[1] library, which was a huge pig (at that time. I assume it's better, these days).
The format was basically strangled in the crib. It was actually a fairly interesting idea, at the time, but files could be huge.