I ran a few quick tests and see, indeed, how images in EPUBs benefit from an SVG wrapper.
KF8 seems to handle SVG wrappers okay, too (in my limited, quick testing).
However, when the Kindle Publishing Guidelines say "SVGs not supported in iOS," they aren't kidding! Kindle for iOS will totally ignore images wrapped in SVG code, i.e., the image will be missing and the page will be blank!
So it seems if an ebook will at any point be read on Kindle for iOS, images (or at least non-cover images) should not be wrapped in SVG code.
So much for my brief foray into SVG. But it was worth it to better understand SVG, and for that I once again thank you all!
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