This is taken from my Surface. As you can see, the image on the top story is pixelated. I've noticed this with pretty much every story since the new site launch. My guess is that my Surface is recognized by the site as a mobile device though if i change the setting on my IE user agent string to Apple Safari (iPad), it fixes it. So I'm thinking obviously the site can scale images.
This isn't a huge deal to me really. It's the videos I'd rather be fixed. Just something I thought I'd post.