Earlier quoted context omitted.
Why would the lack of a progressive mode matter? How is a progressive mode better than a "loading..." spinner?
Progressive mode is better than a loading spinner in the same way that PWAs are better than a loading spinner: By getting mostly usable content in as little time as possible to the user you decrease perceived wait, you decrease time to interactive and you increase perceived loading speed (even though time to full load might be the same or slightly increased).
See, this is the issue. Progressive images aren't "mostly usable content"; they're vague, ugly blobs.