I think this is largely possible, and accuracy to a human is very different than MSE accuracy used in a traditional lossy compression algorithm.

To a human, for example, the exact pattern of every strand of hair isn't important at all -- all that matters is that the hairstyle and hair color stays the same.

The algorithm can also not worry about encoding and re-constructing skin blemishes because humans would possibly actually enjoy not having to put on makeup for a video call.