(a) if my intuition is super wrong I'd love for HN to correct it, heh. (b) long shot, but anyone have links to code? It's HN after all -- maybe some commenters in this thread are aware of cool/idiomatic/simple/etc uses of wavelet code in open source software.
(I know of a bunch of cool uses they've been put to, from JPEGs to the spacex fluid dynamics presentation about using wavelet compression on gpu, but I've personally never used them as a tool for anything, and it'd be fun to learn about them with code!)