Summary

The important difference is the nature of the information that is sent. Sending a model can allow more uses for the visual information than a bunch of pixels but when the model is described as an ASCII XML file it can be large and require effort to process.

Analysis

The article does make some good points, including mentioning that SVG source files are easier to index- a picture may not have obvious textual information that is naturally searchable without some human effort. In general, model based representations can be a good way to compress audio or video information. For example, ACELP audio sends audio signals by describing the parameters for a human vocal tract that could best produce similar speech. In the case of SVG, however, its representation is quite verbose but the benefit is human readability and when needed XML can be transcoded to more compact formats as is often done for content intended for cell phones. In principle, simple images such as a few lines could presumably be described faster than trying to send a complete image that is largely uniform background but as complexity increases these benefits may be lost. This would become especially true if complicated images would be drawn on limited resolution devices where most of the detail would never be shown.
Some j2me support exists, for example  http://java.sun.com/javame/technology/msa/jsr226.jsp . And, of course, ultimate impact on user's machine depends on the implementation of each step from parsing the XML to putting pixels on the screen.
As with most technologies, it will really depend on how people use it. PDF files for example do have many benefits over alternatives but end users don't always seem to appreciate the trade offs. Maybe this recent problem with the iphone and ATT congestion will remind people that even if  "computers and networks are always getting faster" that you can't just use the approach that is in vogue today and that consideration of underlying resource requirements is still important to getting flexibility and extensibility, not just following the current standards. So, usage of SVG may depend on real and perceived benefits but it could create similar bottlenecks if abused.

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