This is a really great step forward for popularizing multi-resolution image formats and opening up a whole new vector in interface design. As a former member of the team you can read my take on where this is heading over at http://8ninths.com/?p=686Here are some screenshots:
I clicked on Asia Vacation - here are the photos loading - very fast; looks like a light table
Here is the photo set loaded ...
and rotated - gotta love the iPhone!
Here's a photo - great detailAnd another
Notice how I can zoom in and still maintain the detail
and one more example ...
again showing the detail