That's the right design decision, because rendering a progressive jpeg repeatedly is rather expensive - as well as redecoding the whole jpeg, you also need to re-render any text or effects overlaying the jpeg, and recomposite the frame. And then you're gonna have to do all that work again when a few more bytes of progressive jpeg arrive from the network...
IIRC the limit is most commonly 6. So if you have 7 or more images the 7th will not even partially download until the 1st has downloaded in full.
With this method, the small blurred images will load before any of the larger ones so you should see them all relatively immediately, absolutely immediately if encoded in the HTTP stream as data rather than being retrieved with an extra HTTP request, before any of the larger images start to transfer.