Previous discussion about this by developers (170+ comments) who have been discussing Responsive Images in a W3C Community Group - http://www.w3.org/community/respimg/2012/05/11/respimg-propo...
The only problem with the element is how to address backwards compatibility? The srcset attribute is backwards compatible because old browsers will just ignore srcset and use the src, but old browsers will ignore the element completely -- how do you get something that works for older browsers but also works for new browsers as well?
I think there are other good reasons to prefer the srcset approach, but not this one. The email here provides motivation: http://lists.w3.org/Archives/Public/public-whatwg-archive/20...;