Where without lazy loading they could normally get up and get a cup of coffee and come back, you are now actively wasting their time as they scroll.
It's good for mobile devices, since you can save on usage caps (which should be illegal, but that's a digression).
It’s horrible UX when you open a bunch of tabs in the background and then when you try to read them, they haven’t loaded properly. Especially if you are on a train or something where your Internet connection is spotty and they could have loaded at the point you opened the tab, but now they cannot.
The main improvement here is that if it is built into the browser instead of implemented individually on each site with JavaScript, there’s a better chance you’ll be able to disable it globally.
Also lazy loading enables the bandwidth that is available to be used on critical path items and not on images further down the page, especially if they’re non-origin images that require the overhead of another TLS handshake + connection, etc.
You don’t get the benefit of HTTP/2 prioritization with non-origin connections.