The #Wikimedia #Toolserver hosts this huge, huge story cloth of the Tropenmuseum demonstrating the technology cobbled together by dschwenn.
The thing I am particularly pleased with is, that I understand that this technology can be used for any of the 6,313,148 images of Commons. All kinds of optimisations are possible, but the sheer fact that this provides an obvious improvement both for computers and mobile phones is what I like best.
Both for Djatoka, the competing technology, and for IIP and VIPS it is not only about showing pictures in the smallest detail. Example uses for IIP are: high resolution museum images, scientific imaging, geographical information systems, medical imagines.. The examples are most interesting.. There are several GLAM related examples like this detail of "The lady praying" from a picture at the Louvre.
The suggestion of using zoom technology for Commons has been around for some time, Kolossos had a demo for Zoomify on his account, but he never worked on making the preprocessing on the toolserver (he had to process the images manually on his windows machine at home, so he basically only ever showed one single image).
As user experience and multimedia usability have a high priority, I hope that this kind of technology will gain its place sooner rather then later.