Even more interesting is http://en.wikipedia.org/wiki/JPEG_2000, which has "truncatable" bitstreams. You can stop getting data at any point, and depending on the encoding choices, you'll just lose fidelity in colour, resolution etc. Encoders can reorder the bitstream to deliver whatever is most useful for the image first. Browsers could then just stop when "enough" has been downloaded to satisfy the demands of the device; high DPI devices would just continue to grab more of the bitstream. It's really useful for devices on low bandwidth links, as you start getting visual results with very little data.
JPEG 2000 hasn't been widely implemented outside of specialised devices, mostly because it's computationally heavy compared to JPEG, and the patent situation is unclear. Although this does mean that it could be implemented in a targeted way, designed to solve these problems (the spec for the entire format is huge). Moreover, one of the patent holders is, IIRC, Apple.