One of the best things about using the Wavelet Transform over the Discrete Cosine Transform is it allows you to structure the file or stream from low to high frequency. This lets you get an image of any size out of a single file just by taking a subset of it. No more resizing thumbnails. It's kind of like a super version of progressive JPEG.
Sadly it never took off as storage / bandwidth are cheap and JPEG is so entrenched (especially in hardware). It still has some niche applications in constrained environments though.
Edit:
I dug out the paper if anyone wants to read it: https://unop.uk/misc/university-final-year-project-cbir
It's funny looking back at something you wrote over 8 years ago any seeing how you've improved. In other words, please don't use this to judge me!
Abstract
This project investigated the effects of scaling images
with JPEG2000 emulation software on a CBIR system based
on MPEG-7. A CBIR system was built that consisted of
indexing and retrieval. The performance of the system was
evaluated with standard metrics.
Both JPEG2000 and MPEG-7 never really took off. Most people moved on to more advanced algorithms.