You still have to download it all, though. Right?
Technically no, but JPEG divides the image into 8x8 segments (does that vary by channel? Can’t remember) so using full resolution images as thumbnails will still suck everyone’s bandwidth like correctly resized .bmp files
This sounded like an obvious truth but I think you're wrong!
JPEG has progressive rendering, so a browser could easily decide to stop once it has rendered enough for the image size. Once you zoom or if it's used elsewhere, it can render a little more.