Earlier quoted context omitted.
The part about this that bothers me is it not being documented well is in vercels financial interest
This is what has made me hesitant to really invest deeply in Next.js. It's just too familiar where some open source project starts. Later it attempts to monetize. Some feature in open source makes it so new monetization thing (usually cloud functionality) isn't needed, so those feature(s) get downplayed, neglected, and eventually deprecated, often with self-fulfilled prophecy/declaration of "nobody is using those" (b…
You can read more about how to use Image Optimization with a static export in the new docs: https://beta.nextjs.org/docs/configuring/static-export. There's a full example there with Cloudinary, but you could use any service you want.