Re: Image 2, http://i.imgur.com/541uG5t.png
Re: Image 2, http://i.imgur.com/541uG5t.png
That's precisely what it's attempting to smooth over - and it works well for anime images because in them, those variations would be considered noise.
Wondering if it would anime-ise it, I fed Waifu2x the standard Lenna image - twice - ended up with this:
Since JPEG uses an 8x8 block transform, you can find artifacts by shifting the image a few pixels over and looking for how the transformed block changes, basically.
https://github.com/FFmpeg/FFmpeg/blob/master/libavfilter/vf_...
Also, using a better chroma upscale can help for small images. libjpeg just uses nearest-neighbor (no "real" resizing) and hardly anyone notices, but it helps with lines and edges.