The problem would be this: In the picture at hand, the big cat is rather simple. Just a portrait of a smiling cat. While the 9 smaller cats are doing all kinds of poses to adjust to the form of the big cat portrait. So the subcats are more complex than the main cat.
When doing the recursive cat, it would be hard to make a subcat from 9 subsubcats because the subcat is already a complex image that is not as easy to recognise as the main cat.