I read this looking to see if there was anything we could adapt for mod_pagespeed. Making images smaller without looking worse is, of course, what anyone optimizing images wants. Unfortunately, all they say about how they actually did their perceptual compression is: Ideally we’d have an algorithm which automatically tuned all JPEG parameters to make a file smaller, but which would limit perceptible changes to the im…
There's an open source re-implementation of their published algorithm on github, but they have patents, which might be part of Flickr's reticence: