[kevincox]

While that is kind of true it is also sort of the point.

The optimal lossy compression algorithm would be based on humans as a target. it would remove details that we wouldn't notice to reduce the target size. If you show me a photo of a face in front of some grass the optimal solution would likely be to reproduce that face in high detail but replace the grass with "stock imagery".

I guess it comes down to what is important. In the past algorithms were focused on visual perception, but maybe we are getting so good at convincingly removing unnecessary detail that we need to spend more time teaching the compressor what details are important. For example if I know the person in the grass preserving the face is important. If I don't know them then it could be replaced by a stock face as well. Maybe the optimal compression of a crowd of people is the 2 faces of people I know preserved accurately and the rest replaced with "stock" faces.